GRAINS-U.S. spring wheat hits new 3-year high on drought toll

* Market fears severe impact to spring wheat area, yields

* CBOT wheat climbs 2 pct, tracking spring wheat rally

* Corn, soybean steady, weaker dollar supports

(Updates with European trading, changes byline/dateline) PARIS/SINGAPORE, June 29 (Reuters) - U.S. spring wheat futures charged to a new three-year high on Thursday as investors anticipated parched conditions in the northern U.S. Plains would cut supply of the prized high-protein milling variety. The latest gains for spring wheat prices on the Minneapolis Grain Exchange (MGEX) also triggered a sharp rise in Chicago wheat futures, the benchmark for global wheat markets. Corn and soybeans edged higher, with spillover support from wheat and weakness in the dollar countering benign weather conditions in the U.S. Midwest. Traders were squaring positions before Friday's U.S. Department of Agriculture (USDA) acreage and quarterly stocks reports, publications that often trigger sharp price movements. "The wheat market is in bullish trend as weather is becoming a big issue for the U.S. spring wheat crop," said Kaname Gokon of Tokyo brokerage Okato Shoji. U.S spring wheat futures were up 3.2 percent at $7.27-1/4 a bushel at 1108 GMT, a fresh high for a spot price since July 2014. This supported a 1.7 percent rise for Chicago Board of Trade wheat to $4.81-1/4 a bushel. Analysts expect the USDA to lower its estimate of U.S. spring wheat plantings for 2017 in its acreage report, while also anticipating that the developing drought in the northern Plains will lower yields. "Rainfall in the next 15 days in the U.S. northern Plains is likely to remain deficient and the spring wheat crop might continue to wither," Rajesh Singla, agriculture analyst with Societe Generale, said in a note. "We see potential for more upside in the Minneapolis over Chicago wheat spread," Singla said. The troubled growing season for U.S. spring wheat, and to a lesser extent dry, hot weather in western Europe, has offset the prospect of another large harvest in Russia, the world's leading global wheat exporter. The corn market was weighing up weather forecasts. Beneficial rainfall is expected this week but warmer and drier conditions in the Midwest are projected following the July 4 U.S. holiday. Grain markets are also awaiting an update on demand from weekly U.S. export sales published at 1230 GMT.

Prices at 1107 GMT

Last Change Pct End Ytd Pct Move 2016 Move CBOT wheat 481.25 8.25 1.74 408.00 17.95 CBOT corn 367.75 1.50 0.41 352.00 4.47 CBOT soy 926.75 5.00 0.54 1004.00 -7.69 Paris MAT wheat Sep 170.75 1.00 0.59 168.00 1.64 Paris maize Jun 173.75 0.25 0.14 166.00 4.67 Paris rape Aug 359.75 0.75 0.21 408.50 -11.93 WTI crude oil 45.17 0.43 0.96 53.72 -15.92 Euro/dlr 1.14 0.00 0.23

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Editing by Amrutha Gayathri and Edmund Blair)