GRAINS-Soybeans set for biggest weekly gain in 3 months on Chinese buying

    * Soybeans futures gain 4.4% this week, biggest jump since
    * China's biggest purchases of U.S. beans since late June
    * Gains likely to be capped by expectations of ample

 (Adds details, quote)
    By Naveen Thukral
    SINGAPORE, Sept 13 (Reuters) - Chicago soybean futures were
largely unchanged on Friday but they were poised for their
biggest weekly rise in nearly three months, underpinned by China
making its most significant purchases of U.S. beans since at
least June. 
    Wheat rose for a second session and was set to end the week
with most gains since mid-June on expectations of lower
production in South America.
    The most-active soybean contract on the Chicago Board Of
Trade are up more than 4.4% this week, set for their
biggest weekly rally since June 14.
    "Soybeans are getting a bit of a boost from Chinese buying,"
 said Phin Ziebell, agribusiness economist, National Australia
    "But overall prices are likely to be capped as the USDA has
shown that there are plenty of feed grain supplies globally."
    Chinese importers bought at least 10 cargoes of U.S.
soybeans on Thursday, or about 600,000 tonnes, for shipment from
Pacific Northwest export terminals, two traders with direct
knowledge of the deals said.  
    The deals, China's first U.S. soybean purchases in a month
and the largest since at least June, come ahead of U.S.-China
trade talks set for early October in Washington. Lower-level
U.S. and Chinese officials are expected to meet within days.

    The U.S. Department of Agriculture (USDA) in a monthly crop
production report for September lowered its U.S. 2019/20 corn
yield estimate to 168.2 bushels per acre (bpa), down from 169.5
in August but above the average estimate in a Reuters analyst
poll of 167.2 bpa.
    The agency trimmed its U.S. soybean yield estimate to 47.9
bpa, down from 48.5 in August, but above the average Reuters
poll estimate of 47.2 bpa.
    CBOT corn has risen 3.7% this week and wheat is
up 4.5% this week, with both markets on track for the biggest
weekly gains since June.
    Maize harvests, which are kicking off in some parts of the
European Union, will contrast sharply from one side of the bloc
to the other this year after a heatwave hurt crops in the West,
while sparing major producing countries in the Southeast.
    Commodity funds were net buyers of Chicago Board of Trade
wheat, corn, soybean, soymeal and soyoil futures contracts on
Thursday, traders said.              
 Grains prices at 0224 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  484.50  0.75    +0.16%   +0.47%       478.48  61
 CBOT corn   368.75  1.50    +0.41%   +2.01%       378.58  49
 CBOT soy    895.50  0.00    +0.00%   +2.69%       870.81  72
 CBOT rice   12.16   -$0.02  -0.21%   +1.17%       $11.74  82
 WTI crude   54.97   -$0.12  -0.22%   -1.40%       $55.22  
 Euro/dlr    $1.107  $0.006  +0.52%   +0.21%               
 USD/AUD     0.6870  0.001   +0.13%   +0.16%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

 (Reporting by Naveen Thukral; Editing by Rashmi Aich)