GRAINS-Chicago soybeans track soyoil prices, extend gains to third session

BEIJING, March 12 (Reuters) - Chicago soybean futures climbed for a third consecutive session on Thursday, tracking gains in soyoil prices after global crude oil recovered, as investors weighed the impact of military conflict in the Middle East.

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

Wheat and corn also climbed.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.6% at $12.21-1/2 a bushel, as of 0311 GMT. Soyoil BOcv1 gained 0.8% to 67.68 cents per pound.

CBOT wheat Wv1 advanced 1% to $6-1/2 a bushel and corn Cv1 climbed 0.6% to $4.63 a bushel.

Oil prices rose sharply 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. 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 has introduced stricter sanitary inspections on soybeans destined for China to screen for pests and weeds, following a request from the Chinese government, the company said.

The move is unusual for the grains market, according to Cargill Latin America head Paulo Sousa. He added that Cargill has temporarily stopped buying soybeans from local farmers in Brazil, as the tightened rules currently prevent exports to China.

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.