Wires

GRAINS-Wheat near five-month high on supply woes; soybeans rebound

Naveen Thukral and Sybille de La Hamaide

* Wheat near highest since late June, extending Friday's rally

* Soybeans rise for first time in eight sessions

* Corn up for second day

(Updates prices, changes dateline) PARIS/SINGAPORE, Dec 2 (Reuters) - Chicago wheat futures on Monday traded near the previous session's five-month high, with the market supported by short-covering and concerns over tightening supplies. Soybeans rose for the first time in eight sessions, rebounding from Friday's more than two-month lows, though gains were capped by continuing uncertainty around a trade deal between Washington and Beijing.

The most active wheat contract on the Chicago Board of Trade was

down 0.1% at $5.40-3/4 a bushel at 1222 GMT. It had gained 2.8% on Friday with an intraday peak of $5.46, its highest since June 28. Soybeans rose 0.3% to $8.79 a bushel, having hit their lowest since Sept. 12 on Friday, while corn was down 0.1% at $3.81 a bushel. "U.S. wheat exports continue at a pace a little ahead of expectations," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "And the market is also realizing its worries about Argentina's wheat crops. Reports from Argentina suggest yields in some regions are down by more than a third." Asian millers are hoping for shipments from Argentina to ease tightnes in supplies resulting from a drought in Australia. Global wheat was also supported by a third consecutive weekly price rise in Russia last week as higher demand from exporters and domestic processors offset rising supply from farmers. In Paris, Euronext milling wheat futures were up 0.7% at 186.75 euros ($205.84) a tonne. Heavy autumn rain is expected to lead to a fall in wheat sowings in France and Britain, raising early doubts over prospects for next year's harvest in Europe, analysts said. However, winter grain sowings in Russia are in a better condition than at the same time last year, an official at the Hydrometcentre weather forecasting service told Reuters. The soybean market is also tracking developments in the U.S.-China trade talks. A potential deal has now been "stalled because of Hong Kong legislation," news website Axios reported on Sunday, citing a source close to U.S. President Donald Trump's negotiating team. The legislation in question is a U.S. bill in support of pro-democracy protestors in Hong Kong. China last week said it would take "firm counter measures" if the United States continues to interfere in Hong Kong. Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Friday and net sellers of soybean and soymeal futures, traders said.

Prices at 1222 GMT

Last Change Pct End YtdMove 2018 Pct

Move

CBOT wheat 541.00 -0.75 -0.14 503.25 7.50CBOT corn 381.00 -0.25 -0.07 375.00 1.60CBOT soy 879.00 2.25 0.26 895.00 -1.79Paris wheat Dec 186.75 1.25 0.67 191.25 -2.35Paris maize Jan 166.00 0.00 0.00 175.00 -5.14Paris rape Feb 389.75 0.00 0.00 366.00 6.49WTI crude oil 56.56 1.39 2.52 45.41 24.55Euro/dlr 1.10 0.00 -0.10 1.1469 -4.05

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

($1 = 0.9073 euros)

(Reporting by Naveen Thukral Additional reporting by Sybille de La Hamaide Editing by Sriraj Kalluvila and David Goodman)