GRAINS - Wheat gains 2 pct on oversold signs

* Wheat due for bounce after big price drop

* Traders eyeing bumper U.S. corn/soy output

* Focus remains on harvest weather in U.S.

(Recasts to include U.S. trading session, fresh analyst quotes, changes dateline from PARIS/SINGAPORE)

CHICAGO, Sept 28 - U.S. wheat gained 2 percent on Monday on signals the market was oversold and due for a bounce after plunging 5 percent on Friday.

Wheat fell sharply late last week on fears that a controversial U.S. regulatory plan to alter storage charges for wheat delivered against Chicago Board of Trade futures could push large speculators out of the market.

"We were oversold last week after setting a new contract low and there is not the kind of selling needed to go to new lows again," said Shawn McCambridge, analyst for Prudential Bache Commodities.

At 10:23 a.m. CDT (1523 GMT), wheat for December delivery was up 9-1/2 cents per bushel at $4.59-1/4.

Gains in crude oil and equities helped boost wheat and corn prices while limiting declines in soy.

Corn was 1 percent higher on support from higher crude oil and equities but soybeans eased 0.4 percent amid the approaching harvest of a likely record U.S. soybean crop.

Traders and analysts said the grain markets remained choppy and on edge as the U.S. fall harvest approaches for corn and soybeans.

Forecasts are calling for a record 2009 U.S. soybean crop and a near record corn crop, bearish factors for the market. But wet and cool weather has slowed crop maturation and stalled early harvest, bullish factors for corn and soybean prices.

"The big issue for soybeans are the big yields and that's putting pressure on soybean prices and the frost talk is all over the board. No one knows for sure what to do with the frost talk," said Joe Bedore, CBOT floor manager for trade house FC Stone.

Frost or freezing temperatures now might harm some of the U.S. corn or soybean crops but forecasters don't see a crop killing freeze for at least 10 days, which should be enough time for crops to mature and produce bumper yields.

"Without the frost over the weekend or in the coming week, I don't think the market can rally. Rather, the market is likely to head lower from here as harvests progress," said Genichiro Higaki, head of the proprietary fund management team at Sumitomo Corp in Tokyo.

"And we are not so concerned about the frost. Even if crop-damaging frost really hits the northern areas, the impact on total yields will be limited."

There are some outlooks for a frost on Tuesday in the far northern reaches of the U.S. crop-producing region followed by a milder spate of weather for up to two weeks. Prices at 11:04 a.m. CDT (1604 GMT)

Pct 2008 YTD

Last Change Chg Close Pct Chg --------------------------------------------------------------- CBOT corn 3.3850 0.0450 1.4 4.07 -16.8 CBOT soy 9.2425 -0.0175 -0.2 9.7225 -4.9 CBOT meal 289.80 0.60 0.2 300.5 -3.6 CBOT soyoil 0.3365 -0.0039 -1.2 0.3329 1.1 CBOT wheat 4.5725 0.0750 1.7 6.1075 -25.1 CBOT rice 13.1200 0.0350 0.3 15.34 -14.5 EU wheat 122.50 -0.5 -0.4 137 -10.6 US crude 67.21 1.19 1.8 44.60 50.7 Dow Jones 9806 141 1.5 8776 11.7 Gold 995.35 4.40 0.4 878.20 13.3 Euro/dollar 1.4665 -0.0033 -0.2 1.3978 4.9 Dollar Index 76.6880 -0.1240 -0.2 81.1510 -5.5 Baltic Freight 2192 9 0.4 774 183 ---------------------------------------------------------------- * In U.S. dollars, front-month contracts, except EU wheat, which is in euros, CBOT wheat, corn and soybeans per bushel, rice per hundredweight, soymeal per ton and soyoil per lb. (Additional reporting by Valerie Parent in Paris, Naveen Thukral in Singapore and Karl Plume in Chicago)