GRAINS-Chicago grains firm on US weather, US-China trade optimism

By Renee Hickman

CHICAGO, June 6 (Reuters) - Chicago grains and soybeans firmed on Friday as expectations improved for U.S.-China trade relations after leaders of the two countries spoke and agreed to further discussions.

Additional support came from weather in the U.S and escalated fighting between Russia and Ukraine.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 6-1/2 cents at $10.58-1/4 a bushel, as of 12:30 p.m. CST (1730 GMT). Wheat Wv1 gained 6-3/4 cents to $5.52-1/4 a bushel and corn Cv1 added 3-1/2 to $4.43 a bushel.

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 the talks, which focused primarily on trade, led to "a very positive conclusion," announcing further lower-level U.S.-China discussions.

China is by far the world's biggest soybean buyer.

Weather forecasts also added support, said Karl Setzer, partner at Consus Ag Consulting.

"We are finally seeing some risk premium added in," said Setzer.

Rains helped improve soil moisture in parts of the U.S. Southern Plains and the Midwest, according to weather forecaster Vaisala. But, dryness lingers in north central Kansas, southeastern Nebraska, Iowa, southern Minnesota, northern Illinois, northern Indiana, and western Ohio, according to the forecaster. That dryness could stress germination and early growth of corn and soybeans.

Meanwhile in wheat, temperatures have been below normal in the Plains this week, slowing winter wheat maturation, Vaisala said.

And, in the war between leading wheat suppliers Russia and Ukraine, fighting intensified, with Russia launching an intense missile and drone barrage at the Ukrainian capital Kyiv in the early hours of Friday.