GRAINS-Wheat extends gains on cold weather worries

Jan 23 (Reuters) - Chicago wheat futures rose for a second session on Friday as severe cold in U.S. and Russian plains raised concern about potential damage to crops, analysts said.

Soybeans ticked up as mixed weather conditions in South America and hopes of further Chinese demand underpinned the market. Corn also edged higher.

A rally in crude oil, after U.S. President Donald Trump said a U.S. "armada" was heading towards Iran, lent background support to grains and soybeans, which are partly used for biofuel. O/R

A backdrop of abundant global grain supply kept prices in check, however. FRX/

The most-active wheat contract Wv1 on the Chicago Board of Trade was up 0.7% at $5.19 a bushel at 1307 GMT.

Extreme cold forecast in the United States in the coming days has stirred fears of crop losses in fields lacking snow cover.

That added to caution over an ongoing bout of severe cold in Russia, the world's biggest wheat exporter.

"The cold snap in the U.S. is not only leading to a sharp rise in natural gas prices, but also to upward pressure on wheat prices," Commerzbank analysts said.

Consultancy Sovecon said on Thursday it could cut its forecast for Russia's crop this year if a cold spell across the country persists for a week or longer.

CBOT soybeans Sv1 added 0.3% to $10.66-3/4 a bushel but held below a three-week high touched on Thursday.

CBOT corn Cv1 was up 0.1% at $4.24-1/4 a bushel.

Comments this week by U.S. Treasury Secretary Scott Bessent, who said he held "positive" talks with Chinese Vice Premier He Lifeng, boosted hopes that China will buy more U.S. beans after purchasing 12 million metric tons under a bilateral trade truce.

Weakness in the dollar this week, as well as relative firmness in the currency of rival exporter Brazil, has also improved export prospects for U.S. soybeans. FRX/

"Any extra competitiveness is helpful, given that the U.S. wants to sell a lot more soybeans to non-China destinations this season," said Tobin Gorey, founder of agricultural consultants Cornucopia.

Brazil is likely to ship less soy than expected in January, but the country is now ramping up what is forecast to be a record harvest.

Traders are monitoring South American crop weather, with dryness in a southern swathe of Argentina raising concerns about corn and soybean conditions there.