GRAINS-Soybeans steady as war worries push crude oil higher

PARIS/BEIJING, March 17 (Reuters) - Chicago soybean futures steadied on Tuesday, as renewed strength in crude oil prices linked to war headlines from the Middle East helped counter doubts over Chinese demand that had sent prices tumbling on Monday.

Corn also regained ground while wheat ticked down.

The most-active soybean contract Sv1 on the Chicago Board of Trade was up 0.4% at $11.59-1/4 a bushel, as of 1225 GMT. Soyoil BOv1, widely used in biofuel, climbed 1.9%.

Soybeans fell by their 70 cent daily trading limit on Monday as news that U.S. President Donald Trump may delay a planned visit to China dampened expectations of further Chinese purchases of U.S. soybeans.

"Soybeans got knocked lower yesterday after Trump requested a delay in meetings with Chinese President Xi," Peak Trading Research said in a note, adding: "Hedge funds remain cautiously long in most agriculture markets due to energy correlations, inflation hedging, and higher input costs."

Crude oil rose after Iranian attacks on the UAE heightened concerns about supply disruption due to U.S.-Israeli war with Iran. Oil fluctuations impact grain markets because biofuel is a major outlet for soyoil and corn, and as oil influences commodity investment flows. O/R

Trump told the Financial Times in an interview published on Sunday that he could delay his summit with his Chinese counterpart as he pressed Beijing to help unblock the Strait of Hormuz. He then said on Monday he wanted to push back the meeting, planned for end-March, by about a month due to the Iran war.

The potential postponement raised doubts over whether China, the world's largest soybean importer, will buy more U.S. soybeans this season after booking 12 million metric tons in recent months under a trade truce.

However, other news pointed to strong domestic demand for U.S. soybeans.

The country crushed a higher-than-expected amount of soybeans in February, according to monthly National Oilseed Processors Association data issued on Monday.

Trump has invited farmers and biofuels producers to an event at the White House on March 27, CBS News reported on Tuesday.

The administration's plans to issue a final rule before the end of March on biofuel blending quotas have raised expectations for additional volumes for feedstocks like soyoil.

CBOT wheat Wv1 eased 0.4% to $5.94-3/4 a bushel and CBOT corn Cv1 added 0.3% to $4.55-1/4 a bushel.

Wheat traders are monitoring dry conditions in the U.S. Plains as crops enter spring growth phases.