GRAINS-Soybeans and corn recover further from 3-month lows

By Naveen Thukral and Gus Trompiz

SINGAPORE/PARIS, Jan 15 (Reuters) - Chicago soybean and corn futures edged up for a second straight session on Thursday to move further away from three-month lows as traders weighed up increased U.S. supply estimates against Chinese demand and upcoming South American crops.

Wheat also gained ground for a second straight day.

The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was up 0.1% at $10.43-1/2 per bushel by 1244 GMT.

The market dropped to its lowest since October 23 on Tuesday.

"There is some buying interest in soybeans as the market is oversold," said one oilseed trader in Singapore. "Overall, the market is looking to Chinese demand for U.S. cargoes for a price direction."

The soybean market has found some support in ongoing demand from China as Beijing books U.S. supplies under a trade truce with Washington agreed in late October.

The U.S. Department of Agriculture on Wednesday reported sales of 334,000 metric tons of U.S. soybeans to China. Traders will be looking for more details on volumes sold to China in weekly U.S. export sales data later on Thursday.

An expected record harvest in Brazil may soon dent Chinese demand for U.S. soybeans, however. Brazilian crop agency Conab on Thursday cut its forecast for the soybean harvest but still pegged it at a record level.

CBOT corn Cv1 gained 0.7% at $4.24-3/4 per bushel, having dropped to its weakest since October 16 on Tuesday.

The USDA surprised grain markets on Monday by increasing its estimate of the 2025 U.S. corn harvest to a new record, while also pegging U.S. quarterly stocks of the cereal at their largest ever.

The agency estimated the last U.S. soybean harvest was larger than many traders and analysts had expected. It cut its U.S. export outlook and raised its estimate for Brazil's harvest.

Dry weather in part of Argentina was also raising early concerns about the country's next corn harvest, though the Rosario grains exchange raised its forecast for the crop to a record volume on Wednesday due to higher planting.

CBOT wheat Wv1 rose 0.8% to $5.16-1/2 a bushel.

Strength in other financial markets was also helping underpin grains, though crude oil retreated on Thursday after comments by U.S. President Donald Trump cooled concerns over possible military intervention against Tehran.

"The macro environment has lost some steam, but it's still relatively supportive for agriculture money flows," Peak Trading Research said.