GRAINS-Chicago soybeans continue gains on rising soyoil prices

BEIJING, March 12 (Reuters) - Chicago soybean futures rallied for a third straight session on Thursday, tracking gains in soyoil prices after crude oil recovered while investors wrestled with the disruption caused by military conflict in the Middle East.

Wheat and corn also gained.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 added 0.7% to $12.22-1/2 a bushel by 0230 GMT. Soyoil BOcv1 gained 0.7% to 67.61 cents per pound.

CBOT wheat Wv1 gained 0.9% to $5.99 -1/2 a bushel. Corn Cv1 climbed 0.5 at $4.62-3/4 a bushel.

Oil prices climbed on Thursday after Iraqi security officials said Iranian explosive-laden boats had hit two fuel oil tankers amid other global supply disruptions from the U.S.-Israeli war on Iran.

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

*In South America, Cargill has paused soybean exports from Brazil to China after Brazilian government inspection changes made it difficult for traders to comply, the company said on Wednesday.

*Brazil's Agriculture Ministry adopted a stricter sanitary evaluation on soybeans bound for China to check for pests and weeds after a request from the Chinese government, the company said.

*China is the biggest client of Brazilian soybeans, buying around 80% of the beans the South American country exports. Brazil is the world's largest producer and exporter of the oilseed.

*Investors are also beginning to adjust their positions in the hopes that there is a breakthrough in upcoming trade talks between the United States and top soy importer China.

MARKETS

Shares fell in Asia on Thursday as oil prices jumped on reports that more ships had been struck in the Strait of Hormuz and in Iraqi waters, fuelling inflation and pushing borrowing costs higher worldwide. MKTS/GLOB

DATA/EVENTS

1230 US Housing Starts Number Jan

1230 US International Trade $ Jan

1230 US Initial Jobless Clm 7 Mar, w/e