GRAINS-Soybeans set for 5th week of gains on strong demand, Brazil dryness

* Strong U.S. exports, dry weather in Brazil buoy soybean prices

* Wheat poised for 2nd week of gains on short-covering bounce

(Adds comment, detail) SINGAPORE, Sept 22 (Reuters) - Chicago soybean futures on Friday were on track for a fifth consecutive week of gains, with prices underpinned by strong demand and dry weather threatening planting in Brazil. Wheat is poised for a second week of gains, supported by short-covering, while corn is facing its second week of losses as the harvest of a bumper crop gathers pace in the United States. The Chicago Board of Trade most-active soybean contract was up 0.7 percent for the week, taking gains to more than 4 percent over the past five weeks. Wheat is up 1 percent this week, extending two-week gains to 3.6 percent, while corn is down 1 percent in its second week of decline. "The oilseed markets continue to have an eye on Brazil's dry soybean regions," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "Weather forecasters expect some rainfall to move through parts of these regions next week though their confidence in the likely distribution is low." Recent dry weather in some of Brazil's important farming states has raised fears that the world's leading exporter of soybeans might develop planting delays. Given that the soybean planting season just started on Sept. 16, it is far too early to know if that will play out, Karen Braun, a market analyst for Reuters, wrote in a column.

There was support for soybeans stemming from a larger-than-expected weekly export sales tally. The USDA reported export sales of U.S. soybeans in the latest week at more than 2.3 million tonnes, topping a range of trade estimates for 1.2 million to 1.5 million. Through its daily reporting system, the USDA said private exporters sold 132,000 tonnes of U.S. soybeans to China. The wheat market has been underpinned by short-covering and weather issues in key producers Australia and Argentina. Commodity funds hold a large net short position in CBOT wheat futures, leaving the market vulnerable to bouts of short-covering. Excessive rains in Argentina have threatened yield prospects, while Australia's crop has suffered from persistent dryness in the east.

Grains prices at 0155 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 453.75 1.25 +0.28% +0.89% 442.09 72 CBOT corn 351.00 0.75 +0.21% +0.29% 357.16 57 CBOT soy 975.75 5.00 +0.52% +0.59% 951.62 72 CBOT rice 12.73 $0.02 +0.16% -0.59% $12.70 55 WTI crude 50.60 $0.05 +0.10% +0.38% $48.31 70


Euro/dlr $1.196 $0.002 +0.13% +0.54% USD/AUD 0.7913 -0.002 -0.23% -1.47%

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

(Reporting by Naveen Thukral; Editing by Joseph Radford)