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

By Sybille de La Hamaide and Naveen Thukral

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.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.1% at $10.53-1/4 a bushel, as of 1347 GMT. Wheat Wv1 gained 0.2% to $5.46-3/4 a bushel and corn Cv1 lost 0.5% to $4.37-1/4 a bushel.

For the week, soybeans are up 1.1% and wheat has added 2.4%. Corn is down 1.6%, 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.

Meanwhile China has allowed the import of rapeseed meal and soybean meal from Uruguay, effective immediately, the customs department said on Friday, as it moves to diversify food supplies and strengthen food security.

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.

In France, ratings for the wheat and barley crops edged lower in the week to June 2, extending a decline in the past month as a dry spring has left northerly regions parched, data from farm office FranceAgriMer showed on Friday.

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