Updates at 1210 GMT, changes dateline
PARIS/CANBERRA, Dec 6 (Reuters) - Chicago wheat futures rose for a seventh straight session on Wednesday to set a new three-month high after a second large Chinese purchase of U.S. wheat in as many days boosted export prospects.
Corn also extended gains this week, supported by wheat, while soybeans edged higher to recover from a one-month low on Tuesday.
Grain markets are grappling with South America's soy and corn harvest outlook after parched Brazilian crop belts received some rain. Attention is turning towards monthly forecasts from Brazilian agency Conab and the U.S. Department of Agriculture (USDA) later this week for supply indications.
The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 1.1% at $6.38 a bushel by 1210 GMT.
The contract touched $6.39-1/2 earlier, its highest since Aug. 24.
The U.S. sales to China have buoyed a wheat market in which speculators hold a huge net short position, making it prone to short-covering.
The USDA on Tuesday confirmed private sales of 198,000 metric tons of U.S. soft red winter wheat to China, following a sale of 440,000 tons on Monday that was the largest one-off U.S. wheat export sale since at least 2020.
"China certainly wouldn't pay a premium to source wheat from the United States, so that's a good sign that domestic futures have finally aligned themselves with world values," said StoneX analyst Arlan Suderman.
China is importing large quantities of wheat after a rain-affected harvest.
However, Egypt's purchase of 180,000 tons of Russian and Ukrainian wheat on Tuesday, in a tender dominated by offers of Russian supplies, underscored continuing export competition from Black Sea origins.
Traders also assessed renewed rumours that India could import Russian wheat to cool domestic prices.
CBOT soybeans Sv1 rose 0.6% to $13.12-3/4 a bushel and corn Cv1 added 0.4% to $4.92-1/2 a bushel.
Soybean prices have fallen sharply since late November as rain has reached the dry central and northern regions of Brazil, the world's biggest exporter of the oilseed.
Traders are watching for Brazilian forecast revisions by Conab and also the USDA, which covers South America in its world crop report.
Prices at 1210 GMT
CBOT wheat Wv1
CBOT corn Cv1
CBOT soy Sv1
Paris wheat BL2c1
Paris maize EMAc1
Paris rapeseed COMc1
WTI crude oil CLc1
Most active contracts - Wheat. corn and soy US
cents/bushel. Paris futures in euros per tonne
(Reporting by Gus Trompiz in Paris and Peter Hobson in Canberra; Editing by Rashmi Aich, Varun H K and Tasim Zahid)
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