GRAINS-Soybeans extend gains on China demand hopes and Brazil rain risks

BEIJING/PARIS, Feb 12 (Reuters) - Chicago soybean futures climbed to a two-month high on Thursday, supported by hopes of further Chinese demand for U.S. supplies and concern that rain in Brazil will disrupt the rival exporter's harvest.

The most active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was up 1% at $11.35-1/4 a bushel by 1331 GMT.

The benchmark earlier rose to $11.41, its highest since December 1 and slightly above a two-month peak last week.

Prices gained impetus last week when U.S. President Donald Trump said that China had increased its target for U.S. soybean purchases under a trade truce agreed in late October.

Expectations for ongoing Chinese demand were further boosted by a report in the South China Morning Post that said Trump and Chinese President Xi Jinping could extend their countries' trade truce for as long as a year at a meeting in early April.

U.S. export sentiment has also been boosted by weakness in the dollar =USD this week and doubts over availability of Brazilian supplies because of heavy rain.

Brazilian crop agency Conab said on Thursday that frequent rains in central and northern regions have disrupted removal of soybeans from fields, adding that this has not yet had significant impact on quality and output prospects.

"Rain in Brazil is creating problems for quality and harvesting. The impact is to delay the flow of export quality soybeans to market from Brazil. The U.S. is the only large-scale alternative for now, so that helps U.S. prices," said Tobin Gorey, founder of agricultural consultant Cornucopia.

Other analysts played down the impact of the rain, given a huge expected harvest.

Conab estimated harvest production at nearly 178 million metric tons while the U.S. Department of Agriculture on Tuesday raised its estimate of the Brazilian crop to 180 million tons, with both estimates representing record highs.

CBOT wheat Wv1 was up 0.2% at $5.38-1/4 a bushel while CBOT corn Cv1 added 0.2% to $4.28-1/2 a bushel.

The cereal markets have been supported by the easing dollar, with wheat gaining additional support on Wednesday from investor short-covering, analysts said.

However, ample global supply remained a curb on prices.

In Europe, consultancy Expana cut its forecast for European Union wheat exports this season for a fourth straight month, citing stiff competition.