GRAINS-Soybeans rise for second session on China demand hopes, higher oil prices

SINGAPORE, May 11 (Reuters) - Chicago soybeans rose for a second straight session on Monday, supported by expectations of Chinese purchases ahead of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week.

Wheat and corn firmed, tracking gains in oil prices, which rose after the United States and Iran failed to reach a peace proposal.

The most-active soybean contract on the Chicago Board of Trade Sv1 added 0.6% to $12.14-3/4 a bushel, as of 0211 GMT. Wheat Wv1 gained 0.8% to $6.23-3/4 a bushel, and corn Cv1 added 0.8% to $4.75 a bushel.

Analysts expect China to make a small soybean purchase, often called a goodwill purchase, ahead of the May 14-15 visit.

Oil prices jumped $3 a barrel on Monday as the United States and Iran failed to agree to a peace proposal drafted by Washington, while the Strait of Hormuz remained largely closed, keeping global energy supplies tight. O/R

Dealers are also monitoring the weather in drought-hit U.S. wheat belts, where last week's rainfall missed some critically dry areas and may have arrived too late or in insufficient amounts to prevent crop damage.

Some rain is forecast this week, but volumes are expected to be moderate, while a swing toward warmer weather could also heap stress onto the crop.

Large speculators raised their net long position in CBOT corn futures in the week to May 5, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.