GRAINS-Soybeans extend gains to two-month peak; corn and wheat ease

PARIS/BEIJING, Aug 22 (Reuters) - Chicago soybeans rose further on Friday to a two-month peak as brisk weekly exports, hopes that China will revert to buying U.S. crop and a rally in soyoil offset supply pressure from favourable U.S. field conditions.

Corn edged down from a three-week high the previous day as the strong yield potential shown by a U.S. field tour curbed support from bumper weekly exports.

Wheat also slipped from a three-week high.

Investors were adjusting positions before a speech on Friday from U.S. Federal Reserve head Jerome Powell, who could indicate the central bank's readiness to cut interest rates next month. MKTS/GLOB

The most active soybean contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.1% at $10.57-1/28 a bushel at 1208 GMT after touching its highest since June 23 at $10.59-1/2.

Soybeans rallied on Thursday as by-product soyoil BOv1 surged by nearly 5% after Reuters reported that the U.S. administration is poised to issue a ruling on requests by small oil refiners for biofuel exemptions.

Traders saw scope for authorities to reallocate biofuel obligations to larger refiners and thereby sustain demand for biofuel, which is made with feedstocks including soyoil.

"Soybean oil saw a sharp increase in Chicago, which in turn supported seed prices," Argus analysts said in a note.

"This momentum is further supported by strong weekly export figures, which outweigh reassuring announcements about production potential."

The U.S. Department of Agriculture reported weekly net soybean export sales of more than 1.1 million metric tons, surpassing trade expectations.

Rumours that China was inquiring about U.S. soybeans lent further support, generating hope it could end months of ignoring U.S. supplies amid a trade war with Washington. Traders, however, said there were no clear signs of any purchases.

The demand expectations turned attention away from results from the annual Pro Farmer crop tour, which confirmed high yield potential in the U.S. Midwest despite some disease issues.

On Thursday's final day of the tour, scouts reported Iowa's corn yield potential and soybean pod counts at their highest levels in at least 22 years. Minnesota also posted its strongest readings for both crops over the same period.

CBOT corn Cv1 eased by 0.1% to $4.11-1/2 a bushel. Prices reached a three-week top on Thursday as they recovered from contract lows struck last week.

Weekly export sales for corn were well above market expectations at about 2.8 million tons.

"Corn found some fresh export demand that helps stem the slide and provide some support," said Ole Houe of IKON Commodities in Sydney.

CBOT wheat Wv1 lost 0.2% to $5.28-1/2 a bushel after demand hopes helped to push the cereal to a three-week high the previous day.