GRAINS-Soybeans steady after three-day fall, China demand in focus

PARIS/BEIJING, Dec 4 (Reuters) - Chicago soybean futures inched up on Thursday, steadying after a three-day fall with support from a weaker dollar, while traders sought more indications about Chinese purchases of U.S. soy.

Wheat was little changed as traders awaited updated crop forecasts from major exporter Canada, while corn eased further back from a six-month high hit earlier this week.

The dollar index =USD fell to a new one-month low on growing expectations for a U.S. interest rate cut next week, making U.S. crops cheaper overseas. FRX/

"The macro backdrop is supportive for agriculture money flows," Peak Trading Research said in a note. "The weak dollar and growing confidence in a Fed rate cut next Wednesday are doing most of the work."

The most-active soybean contract Sv1 on the Chicago Board of Trade was up 0.2% at $11.18 a bushel by 1113 GMT.

The market was pressured on Wednesday by comments from U.S. Treasury Secretary Scott Bessent, who said China would complete its commitments to purchase 12 million metric tons of U.S. soybeans by the end of February, later than an end-December deadline previously cited by Washington.

"The news is bearish for the CBOT market, as the U.S. will face competition from Brazil's new-crop soybeans early next year, and non-China demand is likely to shift to the Brazilian market due to its more competitive prices," said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

However, signs that soybeans are due to load at U.S. ports for shipment to China have reassured traders.

The market may also get more confirmation about Chinese purchases in the U.S. Department of Agriculture export sales data later on Thursday.

The USDA, which is catching up on reporting following a recent government shutdown, will publish figures for the week to October 30, a period during which traders have said Chinese buyers began booking U.S. soybeans as part of a trade truce between Washington and Beijing.

CBOT wheat contract on the Chicago Board of Trade (CBOT) Wv1 was unchanged on the day at $5.38-1/4 a bushel, while corn Cv1 dipped 0.2% to $4.42-3/4 a bushel.

After Black Sea shipping incidents stirred concerns this week about risks due to the Russia-Ukraine war, the market was focusing on official Canadian crop forecasts later on Thursday that are expected to include an upward revision for wheat.

The wheat market found some support from a large tender purchase of 800,000 to 900,000 tons by Algeria, as estimated by traders.