GRAINS-Soy up for third day, corn firm on Fed stimulus

* Soy up for 3rd day; corn firm on stimulus
* Soy rises for 6 out of 7 weeks on tight supply
* Slowing demand caps gains in corn, soybeans
* Egypt buys 235,000 T wheat, supports prices

(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Sept 14 (Reuters) - Chicago soybeans rose for a
third straight session on Friday, and corn firmed, buoyed by the
U.S. Federal Reserve's announcement of a new round of stimulus
measures which investors hope will improve the demand outlook
for raw materials.
The gains, however, were capped by an decline in demand from
top consumer China which has taken the steam out of a recent
rally in prices triggered by the worst drought in more than five
decades that has ravaged crops across the U.S. grain belt.
Commodities and Asian shares rose on Friday while the dollar
remained weak against other major currencies after the Fed said
it would pump $40 billion a month into the world's largest
economy until the U.S. jobs market improves, reviving the appeal
of risky assets that have suffered for months from uncertainty
about global economic growth.
"Soybean and corn prices are reacting positively to the Fed
move, but slowing exports are a concern," said Ker Chung Yang,
commodities analyst at Phillip Futures Singapore.
"The rally has stretched since June, so the markets are
looking at how demand is reacting to this."
Soybeans have gained around 1 percent this week,
rising for six out of seven weeks on fears that the drought will
further reduce supplies as indicated on Wednesday by a U.S.
Department of Agriculture (USDA) report.
Corn is down nearly 3 percent this week, falling for a
third consecutive week as demand weakens. Wheat is largely
unchanged so far this week after falling 1.7 percent last week.
On Friday, Chicago Board of Trade new-crop December corn
rose 0.2 percent to $7.75-1/2 a bushel by 0323 GMT while
November soy rose 0.1 percent to $17.49-3/4 a bushel.
December wheat was unchanged at $9.02 a bushel.
The Fed's move will likely accelerate the risk-positive
momentum at work since the European Central Bank's bond-buying
scheme to get borrowing costs down for euro zone members was
approved by Germany's constitutional court.

SLOWING DEMAND
On the demand side, soybean export premiums at the U.S. Gulf
were mostly steady in muted trade as demand from top importer
China has slowed due to high import prices and poor crush
margins at Chinese plants.
Chinese crushers bought nearly all of the 400,000 tonnes of
soybeans offered in a bi-weekly auction from government stocks
as prices were below import costs.
"China is also diversifying its sources of cooking oil with
a switch to rapeseed oil and some other substitutes," Ker said.
China imported 4.42 million tonnes of soybeans in August,
the lowest in 6 months, as record-high prices and reduced global
supplies cut demand in the world's top importer of the oilseed.
The USDA in its closely watched report estimated this year's
U.S. soybean harvest at 2.634 billion bushels, down from last
month's estimate of 2.692 billion and below analysts' average
estimate of 2.657 billion.
Ending soybean stocks next summer were forecast to be the
lowest in nine years at 115 million bushels, unchanged from the
August estimate.
The U.S. corn harvest was forecast at 10.727 billion
bushels, down slightly from last month's estimate of 10.779
billion but above analysts' average estimate of 10.38 billion.
Egypt, the world's top wheat importer, bought 235,000 tonnes
of Russian, French and Ukrainian wheat for Nov. 21-30 shipment.

It was the seventh tender in about a month by Egypt, which
has been snapping up supplies as a drought reduces the Russian
harvest and dry weather trims output in Australia.

Prices at 0323 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 902.00 0.00 +0.00% -1.20% 874.48 55
CBOT corn 775.50 1.75 +0.23% -5.86% 767.76 40
CBOT soy 1749.75 2.50 +0.14% +7.26% 1588.87 57
CBOT rice $15.24 $0.14 +0.96% -4.27% $15.48 48
WTI crude $98.98 $0.67 +0.68% +6.02% $89.28 78
Currencies
Euro/dlr $1.302 $0.073 +5.92% +5.94%
USD/AUD 1.057 0.002 +0.16% -0.01%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential

(Editing by Miral Fahmy)