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GRAINS-Soybean prices rise on strong China demand, gains in vegoils

* Soybeans gain after closing marginally lower on Tuesday
    * Wheat firms, gains capped as Egypt buys Russia, Romania

 (Adds comment, detail)
    By Naveen Thukral
    SINGAPORE, Oct 26 (Reuters) - Chicago soybean futures
bounced back on Wednesday, inching closer to a two-month high
reached earlier this week, with strong demand and gains in
vegetable oil markets underpinning prices.
    Wheat rose for a second session on short-covering, although
its climb was capped as Egypt, the world's largest importer,
bought shipments from Russia and Romania.
    The Chicago Board of Trade most-active soybean contract
 had risen 0.7 percent to $9.97-1/2 a bushel by 0323 GMT,
after declining marginally on Tuesday. Wheat added 0.2 to
$4.05 a bushel and corn gained 0.3 percent to $3.50-1/4 a
bushel.
    "China is actively buying soybeans but we expect them to buy
at this time of the year as it's peak export season for the
U.S.," said a Melbourne-based analyst. "I think gains in
vegetable oil markets are also helping soybeans move higher."
    Strong soybean demand from China, the world's biggest
importer, is supporting the market. The U.S. Department of
Agriculture said on Tuesday that China bought 516,000 tonnes of
U.S. soybeans.
    Gains in Malaysian palm oil and soybean oil markets were
providing underlying support to soybeans.
    Palm oil futures rose 0.9 percent on Wednesday,
moving near Monday's highest in two-and-half years on concerns
over declining production. Soyoil gained for three out of
four sessions, trading near a two-year high hit earlier this
week. 
    Still, all-time high U.S. soybean production is keeping a
lid on the soybean market. This is the fourth straight year of
global soybean production marking record highs.
    Brazil is muscling in on the peak season for U.S. soybean
sales to China, the world's biggest buyer, as major producers
vie to slim down bulging stockpiles. 
    In deals signed last week, exporters from Brazil sold four
shipments to China for delivery in November and December and
more are being negotiated, trading sources said, eating into
U.S. market share with aggressive pricing.
    Wheat prices faced pressure from Egypt's move to buy 420,000
tonnes of wheat in a tender from Russia and Romania.
 
    The country has bought most of the wheat that it needs from
Russia in recent weeks.
    Meanwhile, Russia's IKAR agriculture consultancy said on
Tuesday it had cut its forecast for Russia's 2016/2017 grain
exports by 600,000 tonnes to 39.4 million tonnes.
    Commodity funds were net buyers of CBOT corn and wheat
futures contracts on Tuesday and net sellers in soybeans and
soyoil, traders said. 

 Grains prices at  0323 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  405.00  0.75    +0.19%   +0.62%       405.78  43
 CBOT corn   350.25  1.00    +0.29%   +0.57%       342.74  54
 CBOT soy    997.50  6.75    +0.68%   +0.55%       966.19  72
 CBOT rice   9.82    -$0.02  -0.20%   -0.36%       $10.00  29
 WTI crude   49.31   -$0.65  -1.30%   -2.40%       $48.24  44
 Currencies                                                
 Euro/dlr    $1.089  $0.000  +0.03%   +0.08%               
 USD/AUD     0.7685  0.004   +0.52%   +1.00%               
 
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Joseph Radford)
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