GRAINS-Chicago soybeans extend gains as crude oil lifts crop markets

BEIJING, March 11 (Reuters) - Chicago soybeans climbed for a second consecutive session on Wednesday, tracking stronger crude oil market as the U.S. and Israel continued their war on Iran, although ample global supplies capped gains.

Higher oil prices can support soybeans as soyoil is used to produce biodiesel, boosting demand for vegetable oils.

Corn inched higher following two consecutive sessions of losses, while wheat priced declined.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.54% at $12.08-1/4 a bushel, as of 0022 GMT. Soyoil BOcv1 added 1.65% to 66.7 cents per pound.

Wheat Wv1 dropped 0.21% to $5.89-3/4 a bushel, while corn Cv1 edged 0.17% higher to $4.53 a bushel.

U.S. West Texas Intermediate CLc1 crude oil prices rose $2.90 per barrel, or 3.5%, to $86.33 in early trade as supplies from the Gulf remain constrained due to the Middle East conflict. O/R

Grain markets are often influenced by crude oil movements due to biofuel demand and commodity fund flows.

A closely followed monthly crop supply-and-demand report from the U.S. Department of Agriculture had minimal impact on markets, as the USDA's changes from the prior-month were negligible.

Brazil's soybean exports in March are projected at 16.47 million tons, slightly higher than 16.09 million tons last week, according to ANEC.

Wheat prices continue to face pressure from abundant global supplies and sluggish U.S. export demand.

Algeria's state grains agency OAIC was believed to have purchased milling wheat in an international tender that sought limited shipment to two ports only, European traders said.

Commodity funds were net sellers of CBOT corn, soyoil, wheat futures, traders said on Tuesday. CBOT/FUNDS

MARKET NEWS

The dollar clung to modest gains against major currencies on Tuesday, as investors' appetite for riskier assets remained subdued amid evolving developments in the Middle East conflict. FRX/

DATA/EVENTS (GMT)

0700 Germany HCIP Final YY February

1230 US Core CPI MM, SA February

1230 US Core CPI YY, NSA February

1230 US CPI MM, SA February

1230 US CPI YY, NSA February

1230 US CPI Wage Earner February