Wheat rises for second session on bargain

SINGAPORE, June 1 (Reuters) - Chicago wheat futuresgained more ground on Thursday, as the market continued torecover from last session's lowest in more than two years onbargain buying and concerns over rains damaging China's wheatcrop.

Soybeans and corn prices rose with dryness forecast for thenewly planted crops in the U.S. Midwest.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board ofTrade (CBOT) added 0.4% to $5.96-3/4 a bushel, as of 0114GMT, after dropping to its lowest since December 2020 onWednesday.

* Soybeans added 0.4% to $13.04-3/4 a bushel and corngained 0.3% at $5.95-3/4 a bushel.

* Wheat prices are recovering after suffering deep losses,which were driven by ample global supplies and a lack of demandfor U.S. cargoes.

* However, excessive rains have damaged the wheat crop inChina, the world's biggest consumer, which has already beenbuying record volumes from the international market since thebeginning of the year.

* China's agriculture ministry is urging local authoritiesto speed up the harvesting and drying of damaged grain, afterheavy rain flooded fields of ripe wheat in the country's mostimportant growing region.

* Authorities should send emergency teams to drain waterfrom fields, speed up access by harvesters and mobilise dryingmachinery to save as much of the crop as possible, the ministrysaid late on Tuesday.

* In the Black Sea region, the U.N. has proposed that Kyiv,Moscow and Ankara start preparatory work for the transit ofRussian ammonia through Ukraine as it tries to salvage a dealallowing safe Black Sea grain exports, a source close to thetalks said on Wednesday.

* Concerns over dry weather are emerging in the U.S. Midwestfor corn and soybeans.

* The U.S. Department of Agriculture on Tuesday rated 69% ofthe U.S. corn crop in good-to-excellent condition, down from 73%a year ago and below an average of analyst estimates for 71%.

* Commodity funds were net sellers of CBOT soybean, corn andwheat futures contracts on Wednesday, and net even in soymealand soyoil futures, traders said.

MARKET NEWS

* Global equities and U.S. Treasury yields were lower onWednesday as risk-off sentiment dominated markets, withinvestors focused on a much-anticipated vote in Congress onraising the U.S. debt ceiling.

DATA/EVENTS (GMT)0030 Japan JibunBK Mfg PMI Final SA May0145 China Caixin Mfg PMI Final May0600 UK Nationwide house price MM, YY May0750 France S&P Global Mfg PMI May0755 Germany HCOB Mfg PMI May0800 EU HCOB Mfg Final PMI May0830 UK S&P GLBL/CIPS Mfg PMI FNL May0900 EU HICP Flash YY May0900 EU HICP-X, F, E, A&T Flash YY, MM May0900 EU Unemployment Rate April1230 US Initial Jobless Clm Weekly1345 US S&P Global Mfg PMI Final May1400 US ISM Manufacturing PMI May(Reporting by Naveen Thukral; Editing by Varun H K)