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GRAINS-Soybeans set for biggest weekly gain in 3 months on Argentina crop worries

worries@

* Soybeans up for 5th session, up 1.5 pct this week

* Dry weather hurting Argentina's crop, raising supplies concerns

* Ample U.S., Brazilian inventories to cap gains

(Adds details, quotes) SINGAPORE, Jan 19 (Reuters) - Chicago soybean futures rose for a fifth consecutive session on Friday with the market poised for its biggest weekly gain in three months on support from dry weather hurting the crop in Argentina, the world's third largest supplier. Wheat gained for a third session in a row with futures on track for their biggest weekly rise since mid-December as short-covering underpinned the market. The Chicago Board of Trade most-active soybean contract is up nearly 1.5 percent this week, the largest gain since mid-October and wheat has gained 1.3 percent after posting losses of nearly 2.4 percent the week before. Corn has climbed 1.7 percent this week, on track for its biggest weekly climb since Dec. 1. Dry weather is persisting across a key growing region in Argentina, the world's third largest exporter of soybeans and No. 1 supplier of soyoil and soymeal. The Buenos Aires Grain Exchange may again reduce its 2017/18 soybean planting area estimate due to sowing delays caused by dry weather in the northwestern part of Argentina, it said on Thursday. Last week the exchange trimmed its 2017/18 soy planting area estimate to 18 million hectares (44.5 million acres) from 18.1 million, citing dryness in the bread-basket province of Buenos Aires. "Argentina is a supply-risk but we have seen these concerns come and go," said Phin Ziebell, agribusiness economist at National Australia Bank. "Global soybean inventory is pretty high." The wheat market is being underpinned by investors' short-covering. Commodity funds were net buyers of CBOT wheat, soybean and soymeal futures contracts on Thursday and net sellers of corn and soyoil futures, traders said. The International Grains Council (IGC) raised its forecast for global wheat production in the 2017/18 season, but said global wheat stocks in 2018/19 could decline for the first time in six years. The IGC also raised its forecast for 2017/18 global corn output by 14 million tonnes to 1.054 billion tonnes, partly reflecting upward revisions for the European Union, China and Nigeria.

Grains prices at 0250 GMT

Contract Last Change Pct chg MA 30 RSI CBOT wheat 426.00 0.75 +0.18% 424.75 53 CBOT corn 352.00 0.50 +0.14% 350.36 60 CBOT soy 974.75 1.75 +0.18% 974.67 67 CBOT rice 12.14 $0.00 -0.04% $12.05 71 WTI crude 63.01 -$0.94 -1.47% $60.07 57

Currencies

Euro/dlr $1.224 $0.000 +0.02% USD/AUD 0.8013 0.002 +0.19%

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

(Reporting by Naveen Thukral; Editing by Sunil Nair)