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GRAINS-Wheat rebounds, soy and corn choppy on weather and trade worries

P.J. Huffstutter

* Drier weather in U.S. Midwest may aid corn, soy plantings

* Dryness in Australia, Russia threatens to cut wheat yields

* Rains boost outlook for wheat crops in western Europe

* (Updates with U.S. trading, new quotes, changes byline/dateline; previous LONDON)

CHICAGO, June 6 (Reuters) - Chicago wheat futures rose on Thursday, rebounding after two days of deep losses, with support from dry weather that is expected to reduce yields in Russia and Australia.

Traders said they are monitoring wet conditions in the southern U.S. Plains and Midwest that threaten winter wheat quality, as well as the spillover impact of ongoing trade tensions between the United States and Mexico.

Thursday's market - as it has been in recent days - is being driven by two elements: weather and trade uncertainty.

Corn and soybean futures were faced with choppy trading as the weather outlook across the U.S. Midwest continues to show a slightly wider-than-expected window for farmers to plant their crops.

Soybeans headed lower for a second straight session on a slight improvement in Midwest weather this week that could benefit planting progress.

The USDA reported export sales of U.S. soybeans in the week to May 30 at 583,700 tonnes (old and new crop years combined), in line with trade expectations.

Corn futures also slipped early in the day after USDA's report of export sales of U.S. corn fell far below trade expectations. In the week to May 30, U.S. exporters sold 14,800 tonnes, including net cancellations of 8,700 tonnes of old-crop corn and net sales of 23,500 tonnes of new-crop corn.

The market also continued to worry about U.S. trade tensions with Mexico, a top buyer of U.S. corn.

Mexican importers, who usually buy their corn from the United States, have booked a 35,000-tonne corn cargo from Brazil amid a trade spat between Washington and Mexico City. 1/8nL8N23C5TY

Corn futures recovered a bit, thanks to spillover support in the wheat market, which also helped soybeans pair losses early in the session, said Terry Reilly, senior commodities analyst with Futures International.

"Regardless of anything, the U.S. planting delays are still supportive for corn," Reilly said.

The most-active wheat contract on the Chicago Board of Trade was up 3.72% at $5.09 a bushel by 11:09 a.m. CDT (1609 GMT), having lost more than 5% in the two previous sessions.

The U.S. Department of Agriculture reported that U.S. exporters sold 476,000 tonnes of wheat for the period ended May 30, within the range estimated in a Reuters survey.

Chicago soybeans fell 0.03% to $8.69-1/2 a bushel, having closed down 1.4% on Wednesday, while corn was up 1.45% to $4.20-3/4 a bushel after closing down 2.5% on Wednesday. (Additional reporting by Nigel Hunt in London and Naveen Thukral in Singapore; editing by Richard Pullin, Elaine Hardcastle and Dan Grebler)