GRAINS-Wheat rises on weather concerns in US Plains; soy, corn dip

BEIJING, Jan 8 (Reuters) - Chicago wheat futures extended gains for a second straight session on Thursday and hovered near a more than one-week high due to dryness concerns in the U.S. Plains.

Soybeans and corn fell, with soy under pressure from ample global supplies.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT)Wv1 added 0.1% to $5.18-1/2 a bushel, as of 0219 GMT.

CBOT soy Sv1 fell 0.12% to $10.65-3/4 a bushel. Corn Cv1 lost 0.17% to $4.46 a bushel.

The U.S. Department of Agriculture's data on Tuesday showed that condition ratings for U.S. winter wheat crops fell during December in Kansas, the top U.S. winter wheat producer, and other Plains states.

Soybean prices are still being tempered by expectations of a large crop in South America, analysts said.

Sales of U.S. soybeans to China will partly dent demand for the Brazilian product this year from the world's largest importer, said Sergio Mendes, head of grain traders lobby Anec.

In Argentina, heavy rainfall forecast across most of the agricultural belt will boost moisture levels over the coming days, benefiting soy and corn crops at key development stages, two major grain exchanges said.

The Rosario Grains Exchange (BCR) forecasts a record 2025/26 corn harvest of 61 million metric tons and a soybean harvest of 47 million tons.

The USDA was scheduled to issue estimates for U.S. winter wheat plantings on January 12, along with estimates for last year's corn and soybean yields and other data.

Commodity funds were net buyers of CBOT corn, soybeans, wheat, traders said on Wednesday. CBOT/FUNDS

MARKET NEWS

Oil prices gained slightly, rebounding from two days of declines, as a larger-than-expected draw in U.S. crude inventories provided some impetus for investors to buy futures while they monitor developments in Venezuela. O/R