GRAINS-Soybeans hold firm as crude oil regains ground

BEIJING/PARIS, March 11 (Reuters) - Chicago soybean futures rose on Wednesday as crude oil recovered from a day-earlier plunge while investors wrestled with disruption caused by the U.S.-Israeli war with Iran.

Corn and wheat were also higher, steadying after a two-session fall.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 1.2% at $12.16 a bushel, as of 1154 GMT. Soyoil BOcv1 added 3.2% to 67.73 cents per pound.

Higher crude prices can support soybeans as soyoil is widely used to produce biodiesel fuel.

"Oilseeds continue to be supported by elevated energy prices," said Dennis Voznesenski, an analyst at Sydney's Commonwealth Bank.

"While some are optimistic of a quick end to the conflict and restart of fuel and fertiliser shipments via the Strait of Hormuz, recent Iranian attempts to mine the Strait speak to the opposite."

Crude tumbled on Tuesday as investors reacted to U.S. President Donald Trump's prediction the war could end soon. But concerns about significant fallout for energy and shipping remained and helped prices turn higher on Wednesday. O/R

CBOT corn Cv1 was up 1.2% at $4.57-1/2 a bushel, while CBOT wheat Wv1 rose 1.4% to $5.99-1/4 a bushel.

Corn like soyoil is heavily used in biofuel. Wheat can also be sensitive to crude fluctuations because of geopolitical risks and commodity investment flows.

"Faced with the military situation in the Middle East, traders remain above all focused on the evolution of oil prices," Argus Media analysts said.

The upheaval in the Middle East has shifted attention away from ample global supplies of grain, helping lift Chicago prices to multi-year and multi-month highs on Monday.

Traders largely brushed off a monthly supply-and-demand report from the U.S. Department of Agriculture on Tuesday.