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

By Naveen Thukral

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 and agreed to further discussions.

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

"There is some positive sentiment in the futures market after Trump and Xi talked," said an oilseed trader in Singapore at an international company that sells soybeans to China. "As far as physical supplies are concerned, China will need U.S. supplies only from September onwards."

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 0.3% to $10.54-3/4 a bushel, as of 0230 GMT, wheat Wv1 gained 0.4% at $5.47-1/2 a bushel and corn Cv1 firmed 0.5% to $4.41-1/2 a bushel.

For the week, soybeans are up 1.3% and wheat has added 2.5%. Corn is down around half a percent, 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, raising 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