GRAINS-Wheat rises on short-covering, U.S. weather concerns

* Wheat gains more ground, short-covering by funds supports

* Excessive moisture in U.S. grain belt raises crop concerns

* European trade slowed by holidays in France and Germany (Adds quotes, updates prices)

LONDON, May 25 (Reuters) - Chicago wheat futures rose for a second straight session on Thursday boosted by short-covering by funds and concerns over excessive moisture in the U.S. grain growing areas.

U.S. corn and soybean prices also edged higher with a softer dollar providing support.

The Chicago Board of Trade most-active wheat contract rose 0.4 percent to $4.34-1/4 a bushel by 0939 GMT, having added 0.7 percent on Wednesday.

"I think the wheat market has bottomed out at around $4.30, funds are short on wheat and any short-covering will support prices," said Ole Houe, an analyst with brokerage IKON Commodities in Sydney.

"Buyers are thinking prices are not going to get any cheaper."

Adverse weather lent support, with excessive moisture in the U.S. Plains and Midwest raising concerns about yield prospects and grain quality for the maturing winter wheat crop.

Wheat gains were checked, though, by a slight improvement in weekly winter wheat condition ratings.

December milling wheat in Paris was up 0.15 percent to 171.50 euros a tonne.

Dealers said activity in Europe was likely to be subdued on Thursday due to public holidays in several countries including France and Germany.

CBOT corn prices edged up with the most active contract up 0.3 percent at $3.72-1/2 a bushel, having gained 0.5 percent the day before.

The market awaits the USDA's first 2017 condition ratings for corn, which the government expects to release in its next weekly crop progress report on May 30.

In the past 20 years, above-average corn yields were not recorded at harvest if the initial corn rating came in below 70 percent (http://reut.rs/2rS4R9C).

Dealers continued to monitor sales from China's state reserves which could limit demand on the international market.

"Higher sales from China domestic reserves are likely to impact Chinese corn imports over the coming weeks," ING said in a market note on Thursday.

Soybeans climbed 0.2 percent to $9.50-1/4 a bushel, after ending Wednesday little changed. (Additional reporting by Naveen Thukral in Singapore; Editing by Subhranshu Sahu and Ed Osmond)