GRAINS-Wheat eases after two days of gains, market eyes USDA report

* Wheat dips 0.4 pct after two days of short-covering gains
    * Corn, soybeans little changed ahead of USDA report

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Oct 12 (Reuters) - Chicago wheat ticked lower on
Wednesday after two days of gains as investors positioned
themselves ahead of the U.S. government's monthly report on the
supply and demand of agricultural products.
    Corn and soybeans were largely unchanged ahead of the U.S.
Department of Agriculture report which is expected to show an
increase in soybean yields and a cut in corn production
    Chicago Board of Trade most-active wheat contract fell
0.4 percent to $4.05-3/4 a bushel by 0240 GMT, after gaining 3.2
percent in the past two days.
    Corn was unchanged at $3.45-1/2 a bushel and soybeans
 flat at $9.54-1/4 a bushel.
    "It is mainly positioning before the USDA report," said
Kaname Gokon at brokerage Okato Shoji in Tokyo.
    "Soybeans yields may be increased while corn production
numbers are likely to be reduced. For wheat there are some
concerns for wheat output in some areas but overall supplies are
still pretty ample."
    After the market close on Tuesday, the USDA said the U.S.
corn harvest was 35 percent complete by Sunday, behind the
five-year average of 38 percent, and the soybean harvest was 44
percent complete, lagging the five-year average of 47 percent.
    The latest figures fell short of analyst expectations for
corn harvest progress to reach 38 percent and soybeans to reach
48 percent. 
    The USDA's October supply and demand report is due at 1600
GMT on Wednesday.
    Analysts surveyed by Reuters on average expected the USDA to
lower its estimate of the U.S. 2016 corn yield from 174.4
bushels per acre in September to 173.5, which would still be an
all-time high. 
    Analysts expect the government to raise its U.S. soybean
yield estimate to 51.5 bushels per acre, up from USDA's
September figure of 50.6, also a record high.
    The agency said export inspections of U.S. soybeans in the
latest week were at 1.8 million tonnes, above a range of trade
expectations for 1.0 million to 1.2 million tonnes. 
    In news, Australia is expected to harvest a near-record
wheat crop in 2016/17, slightly ahead of official estimates, a
Reuters poll shows, but recent heavy rains may lead to quality
downgrades and curb exports. 
    The world's fourth-largest wheat exporter is set to produce
28.35 million tonnes, a poll of 10 analysts and traders found,
just ahead of Australia's most recent official estimate of 28.1
million tonnes made in September.
    Commodity funds were net buyers of CBOT corn, wheat and
soybean futures on Tuesday.  
 Grains prices at 0240 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  405.75  -1.50    -0.37%   +2.79%       400.98  60
 CBOT corn   345.50  0.00     +0.00%   +1.69%       335.03  65
 CBOT soy    954.25  0.00     +0.00%   -0.26%       959.46  45
 CBOT rice   10.36   -$0.04   -0.34%   +2.63%       $9.78   80
 WTI crude   50.92   $0.13    +0.26%   -0.84%       $46.50  69
 Euro/dlr    $1.105  -$0.015  -1.35%   -0.91%               
 USD/AUD     0.7586  0.001    +0.15%   +0.05%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Christian