GRAINS-Soybean firm, set for weekly gain on US-China trade optimism

SINGAPORE, June 6 (Reuters) - Chicago soybean rose for a fourth consecutive session on Friday, with the market set for a weekly gain on expectations of improved U.S.-China trade relations, after leaders of the two countries spoke over phone and agreed to further discussions.

Wheat gained more ground and the market to set to end the week on a positive note amid escalating conflict between top grain suppliers Russia and Ukraine.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 0.2% to $10.54-1/4 a bushel, as of 0011 GMT, wheat Wv1 gained 0.1% at $5.46 a bushel and corn Cv1 firmed 0.2% to $4.40-1/4 a bushel.

* For the week, soybeans are up 1.2% and wheat has added 2.3%. Corn is down nearly 1%, falling for a second week in a row.

* U.S. President Donald Trump and Chinese leader Xi Jinping confronted weeks of brewing trade tensions in a rare leader-to-leader call on Thursday. Trump said on social media that the talks, which focused primarily on trade, led to "a very positive conclusion," announcing further lower-level U.S.-China discussions.

* While China is by far the world's biggest soybean buyer, U.S. is the No. 2 exporter of the oilseed.

* Argentina's soybean yields continue to track higher than expected this season, the Rosario grains exchange said on Thursday, signaling that the process of harvesting the key agricultural export is however progressing slower than usual.

* Wheat futures have firmed this week as traders eyed developments in the Black Sea region, where Ukraine has stepped up attacks on Russian targets.

* Russia will respond to Ukraine's latest attacks as and when its military sees fit, the Kremlin said on Thursday, escalating worries over grain supplies.

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

MARKET NEWS

* Wall Street veered to a sharply lower close and crude prices advanced on Thursday as a high-profile dispute between U.S. President Donald Trump and billionaire Elon Musk overshadowed trade talks between Washington and Beijing and a spate of downbeat economic data. MKTS/GLOB

DATA/EVENTS (GMT)

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0645 France Reserve Assets Total May

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1230 US Non-Farm Payrolls, Unemployment Rate, Average Earnings YY May