GRAINS-Wheat rises for second day on U.S., Australian crop concerns

* Crop concerns prompt short covering in Chicago wheat
    * Dryness in U.S. wheat areas, excess rains in Australia

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 11 (Reuters) - Chicago wheat rose for a
second session on Tuesday as concerns over dryness in U.S. wheat
growing regions and excessive rains in Australia's grain belt
prompted investors to cover short positions. 
    Soybeans edged higher after two days of declines although
gains were capped by expectations of higher yields in the United
States while corn extended gains after finishing 1 percent
higher on Monday.
    The Chicago Board of Trade most-active wheat contract 
climbed 0.4 percent to $4.05-1/4 a bushel by 0236 GMT. That was
near their session-peak of $4.05-3/4 a bushel, highest since
Oct. 6.
    Soybeans gained 0.3 percent to $9.57 a bushel and corn
 rose 0.2 percent to $3.43-3/4 a bushel.
    "There are more concerns about the Australian crop than what
we had a month ago as the weather outlook going into harvest is
wet on the east coast," said Phin Ziebell, agribusiness
economist at National Australia Bank. 
    "We are seeing some short covering in CBOT wheat, having
said that we are not talking about a rally, it is just rising
from multi-year lows."
    As of Oct. 4, commodity funds held their largest net short
position in CBOT wheat on record, weekly data released on Friday
from the U.S. Commodity Futures Trading Commission showed,
leaving the market vulnerable to short-covering rallies.
    Gains in soybeans are being checked by an active harvest
weekend in the U.S. Midwest.
    Analysts expect the U.S. Department of Agriculture on
Wednesday to raise its forecast of the U.S. soybean yield, which
the government has already projected at a record-high 50.6
bushels per acre.
    The agency in its monthly supply-demand report is expected
to trim estimates for U.S. corn yields. 
    In news, Russian wheat prices rose slightly last week on the
back of increased demand from buyers and a stronger rouble.
    Black Sea prices for Russian wheat with 12.5 percent protein
content were at $173.50 a tonne on a free-on-board (FOB) basis
at the end of last week, up $2.50 from a week earlier, Russian
agricultural consultancy SovEcon said in a note. 
 Grains prices at  0236 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  405.25  1.50     +0.37%   +2.40%       400.74  61
 CBOT corn   343.75  0.50     +0.15%   +0.95%       334.23  63
 CBOT soy    957.00  2.50     +0.26%   -0.16%       959.88  48
 CBOT rice   10.28   $0.04    +0.44%   +1.68%       $9.76   82
 WTI crude   51.25   -$0.10   -0.19%   +2.89%       $46.37  73
 Euro/dlr    $1.113  -$0.007  -0.66%   -0.22%               
 USD/AUD     0.7569  -0.001   -0.08%   -0.17%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Christian