GRAINS-Soybeans extend gains with crude as Mideast war continues

BEIJING/PARIS, March 12 (Reuters) - Chicago soybean futures rose for a third consecutive session on Thursday, as crude oil climbed further following Iranian attacks that deepened fears of a protracted Middle East conflict.

Wheat and corn also rose, with the strength in crude again offsetting a backdrop of ample global grain supplies.

The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was up 1.4% at $12.30-1/2 a bushel, as of 1158 GMT, close to a 21-month peak of $12.33-3/4 from Monday.

Higher crude prices can support soybeans as soyoil is widely used to produce biodiesel fuel. CBOT soyoil BOcv1 gained 1.1% to 67.91 cents per pound.

Crude also influences crop markets as part of commodity investment flows linked to geopolitical and economic factors.

"The macro backdrop is bullish - $100 crude, a closed Strait of Hormuz, and reinflating inflation expectations all point higher for grain and oilseed markets," Peak Trading Research said.

CBOT wheat Wv1 advanced 1.4% to $6.03 a bushel and corn Cv1 climbed 1.3% to $4.66-1/4 a bushel.

Oil prices rose sharply, with Brent crude LCOc1 briefly moving above $100 a barrel, after Iraqi security officials said Iranian explosive-laden boats had hit two tankers. O/R

The war in the Middle East is causing the biggest oil-supply disruption in the history of global markets, the International Energy Agency said on Thursday, a day after approving the release of a record volume of 400 million barrels of oil from strategic stockpiles.

Grain traders are also awaiting weekly U.S. export sales data later on Thursday to gauge overseas demand.

In Europe, consultancy Expana lowered its forecast for European Union soft wheat exports in 2025/26 for a fifth consecutive month, after reducing projected wheat and barley shipments to the Middle East due to the war in the region.

Investors are also watching for further indications about Chinese demand for U.S. soybeans ahead of a planned visit to China by U.S. President Donald Trump at the end of the month.