* Soybeans gain more ground as U.S. supply outlook supports
* Corn futures rise for 2nd session on strong demand, wheat
SINGAPORE, Oct 12 (Reuters) - Chicago soybean futures edged
higher on Monday, trading near a more than two-year peak hit in
the previous session as the U.S. government's estimate for lower
supplies supported prices.
Corn rose for a second session while wheat gained ground.
"Soybean prices were lifted by a friendly new estimate from
the USDA and continued worries about dry conditions in South
America," said Tobin Gorey, director of agricultural strategy,
Commonwealth Bank of Australia.
The most-active soybean contract on the Chicago Board of
Trade rose 0.2% to $10.67-1/2 a bushel by 0249 GMT, having
risen to a 2018 high of $10.79-3/4 a bushel on Friday.
Corn advanced 0.5% to $3.97 a bushel and wheat
gained 0.6% to $5.97-1/4 a bushel.
U.S. corn and soybean supplies will be smaller than
previously forecast, as adverse weather reduced the acreage that
farmers will harvest, the U.S. government said on Friday.
Soybean stocks were pegged at a five-year low, with rising
exports eating into the stockpile, according to the U.S.
Agriculture Department's monthly World Agricultural Supply and
Demand Estimates Report.
With U.S. soy supplies tightening, traders are increasingly
turning their attention toward rival producer Brazil, where
dryness has threatened plantings. Traders are also monitoring
dryness that has hampered wheat plantings in the Black Sea
Current dry weather may reduce Russia's winter wheat sowing
area by 10-15%, mainly in the central part of the country, the
Sovecon agriculture consultancy said in a note on Friday.
Large speculators raised their net long position in CBOT
corn futures in the week to Oct. 6, regulatory data released on
The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, switched to net
long position in CBOT wheat and raised their net long position
(Reporting by Naveen Thukral; Editing by Aditya Soni and