Soybeans climb to one-week high on tightening supplies

SINGAPORE, July 12 (Reuters) - Chicago soybeans rose for a third consecutive session on Wednesday, climbing to a one-week high as a widely-watched U.S. government report is expected to reduce its production and supply estimates.

Wheat edged higher, holding on to last session's strong gains with attention turning to Black Sea supply risks after a drone strike on Ukraine's Odesa port.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.6% to $13.68-1/2 a bushel, as of 0015 GMT, after climbing to its highest since July 5 at $13.70 a bushel earlier in the session.

* Corn added 0.5% to $5.04 a bushel and wheat gained 0.1% to $6.61 a bushel.

* Analysts expect the USDA in a monthly supply/demand report due on Wednesday to cut its forecast for the U.S. soybean harvest, after the agency slashed its plantings estimate in a June 30 acreage report. Soybean ending stocks for the 2023/24 marketing year are expected to tighten as well.

* Soybean futures rose on Tuesday after the U.S. Department of Agriculture (USDA) rated 51% of the U.S. soy crop in good-to-excellent condition, up from 50% last week but below analysts' average estimate of 52%.

* In Illinois, the top U.S. soybean producer, 36% of the crop was rated good to excellent, up from 30% the prior week but still among the lowest ratings in the Midwest crop belt.

* For corn, analysts expect only modest changes to the USDA's production and 2023/24 ending stocks forecasts, while sluggish demand for the grain remains a worry as farmers in Brazil continue to harvest a bumper corn crop.

* Commodity funds were net buyers of CBOT soybean, wheat, soymeal and corn futures contracts on Tuesday and net sellers of soyoil futures, traders said.

MARKET NEWS

* - Global shares rose and the dollar pulled back on Tuesday, a day ahead of U.S. inflation data that could warrant a quicker end to Federal Reserve rate hikes, while the prospect of China propping up growth helped to lift oil and other commodities.

DATA/EVENTS (GMT) 1230 US Core CPI MM, SA; YY, NSA June 1230 US CPI MM, SA; YY, NSA June 1230 US CPI Wage Earner June 1800 US Federal Reserve issues the Beige Book (Reporting by Naveen Thukral; Editing by Rashmi Aich)