* Soy up 1 pct, wheat rises 0.8 pct on Fed move
* Grain markets eye USDA's world demand/supply report
* Technicals see wheat rising towards $8.80 per bushel (Updates prices)
By Naveen Thukral
SINGAPORE, Nov 4 (Reuters) - Chicago soybean futures rose more than 1 percent on Thursday, while wheat gained 0.7 percent following a decision by the U.S. Federal Reserve to inject liquidity into financial markets by buying bonds.
The Fed launched a fresh effort to support a struggling U.S. economy on Wednesday, committing to buy $600 billion in government bonds despite concerns the programme could do more harm than good.
"We have had a higher start across the commodity complex, soybean, corn and wheat have all bounced following the Fed QE announcement which is ultimately seen as bearish for the U.S. dollar," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.
Chicago Board of Trade soybeans for November delivery added 1.08 percent to $12.40-¾ a bushel by 0711 GMT and December wheat rose 0.8 percent to $6.95-½ per bushel.
CBOT December corn was up 0.4 percent to $5.83-½ per bushel.
The dollar held near a 10-month low on the euro and a 28-year low on the Australian dollar while edging back towards a record low on the yen on Thursday after a Federal Reserve decision to buy more U.S. government debt.
The attention in Chicago grain markets is turning to a U.S. Department of Agriculture report on global demand/supply of agricultural products due to be released on Tuesday.
"The grain markets are now going to move on to focus on the USDA crop report," said Mathews.
"The outside markets will continue to be important but there is going to be more and more market talk about potential supply downgrades in the United States, particularly with respect to the corn crop."
Analysts expect the USDA to further lower its U.S. corn crop production estimate after cutting its forecast by 4 percent last month after late summer heat reduced yields.
The USDA's estimate of the U.S. soybeans harvest could also be cut further after a 2 percent drop in October due to a hot end to summer.
Analytical firm Informa Economics projected the 2010 U.S. corn crop at 12.592 billion bushels, with an average yield of 155.0 bushels per acre. This compares with Informa's previous forecast of 12.9 billion bushels for corn.
Informa raised its U.S. 2010 soybean production forecast slightly to 3.425 billion bushels, reflecting an average yield of 44.6 bpa.
Worries about dry weather in the U.S. wheat belt had added momentum to a grains complex already shaken this year by a severe drought in Russia that prompted an export embargo there. But the latest forecasts show rain next week in Kansas, the top U.S. wheat state. PRICES AT 0711 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 695.50 5.25 +0.76% +0.18% 688.98 49 CBOT corn 583.50 2.50 +0.43% +1.35% 543.64 66 CBOT soy 1251.25 13.75 +1.11% +1.40% 1171.57 77 CBOT rice $14.77 $0.23 +1.55% +3.14% $13.76 61 WTI crude $85.56 $0.87 +1.03% +1.98% $81.86 73 Currencies Euro/dlr $1.413 $0.016 +1.18% +1.29% USD/AUD 1.006 0.021 +2.15% +2.30% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Editing by Clarence Fernandez)