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GRAINS-Wheat rises to six-week high on concerns of dry weather on U.S. crop

* Wheat up 2.7 pct this week, on track for 2nd week of gains

* Dry weather in key U.S. spring wheat regions may reduce yields

* Soybeans rise for 2nd day on higher U.S. processing

(Adds details, quotes) SINGAPORE, June 16 (Reuters) - Chicago wheat climbed to its highest since early May on Friday with the market on track for a second week of gains as dry weather in parts of North America threatens to reduce yields. Soybeans gained more ground on the back of strong demand in the United States with higher-than-expected crushing in May. The Chicago Board Of Trade most-active wheat contract is up 2.7 percent this week and has risen by 6.6 percent in the past two weeks - the biggest fortnightly rally since Feb. 10. Wheat earlier rose to as much as $4.58-1/4 a bushel, the highest since May 2. Soybeans gained 0.5 percent $9.39 a bushel. For the week, the market is down 0.2 percent, after gaining more than 2 percent last week. Corn is down 2.2 percent this week, losing half of the gains made in the previous week. Wheat is rallying on concerns that recent dry weather will curb the output of the U.S. spring crop. "North American spring wheat crops remain too dry and weather forecasters do not expect that to change," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia in Sydney. "Forecasters are looking for a rain event in the region from today into the weekend but do not expect enough rain to make a difference." It is not just the U.S. either. Consultants Strategie Grains on Thursday cut its estimates for most grain crops in the European Union because of hot and dry weather across most of Europe in recent weeks. U.S. soybean crushings were heavier than expected during May, with plants in the eastern Midwest, Iowa and the Southwest sharply raising their pace of processing during the month, the National Oilseed Processors Association said on Thursday.

It said its members crushed 149.246 million bushels during May, the second-busiest May on record. Investors in the agricultural markets are also keeping a close watch on a port workers strike in Argentina. More than 20 grains cargo ships had to drop anchor along Argentina's Parana River on Thursday due to a wage strike by members of the CGT San Lorenzo port workers union, a spokesman for the country's CIARA-CEC export company chamber said. Commodity funds were net buyers of CBOT corn, wheat and soybean futures contracts on Thursday, traders said. They also were net buyers of soyoil and net sellers of soymeal.

Grains prices at 0238 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 457.75 4.00 +0.88% +3.33% 435.33 71 CBOT corn 379.25 -0.25 -0.07% +0.60% 373.56 54 CBOT soy 939.00 4.25 +0.45% +0.78% 944.42 60 CBOT rice 11.45 -$0.02 -0.22% +3.81% $10.89 68 WTI crude 44.45 -$0.01 -0.02% -0.63% $47.77 27

Currencies

Euro/dlr $1.115 $0.001 +0.05% -0.61% USD/AUD 0.7595 0.002 +0.25% +0.13%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral; Editing by Christian Schmollinger)