GRAINS-Soy futures rise as dry Argentina crop weather fuels supply concerns

* Soybeans underpinned by dry weather in Argentina

* Corn bounces from losses on Thursday

* Attention turns to next week's USDA supply-demand outlook (Adds latest prices, changes dateline, previous PARIS/SINGAPORE)

By Tom Polansek

CHICAGO, March 5 (Reuters) - U.S. soybean futures prices advanced on Friday, on track for a fourth straight weekly gain, as dry weather in Argentina continued to fuel concerns about global supplies of the oilseed.

Corn futures rebounded from a three-week low reached in the previous session, while wheat futures also edged higher.

Crops in Argentina, the world's top soymeal exporter, remained a concern as Commodity Weather Group said a rain deficit was seen "leading to severe yield loss" for 30% of the soy belt in the coming 10 days.

Some traders also adjusted positions ahead of the release of monthly U.S. Department of Agriculture (USDA) crop forecasts next week. The agency is expected to further lower its estimates for 2020/21 ending stocks for soybeans and corn, according to a Reuters survey of analysts. [nL2N2L203A

Record U.S. soybean crushings and exports are already projected to shrink U.S. soybean stocks to a mere 9-1/2-day supply ahead of the next North American harvest.

"Old-crop soybeans are still in a situation where we really don't have any room to give," said chief ag market strategist at Zaner Ag Hedge Group.

The most-active soybean contract on the Chicago Board of Trade (CBOT) shot up 12 cents to $14.22-1/2 a bushel by 11 a.m. CST (1700 GMT). The contract had climbed to a one-week high on Thursday, nearing last week's 6-1/2-year peak.

CBOT corn was up 7-3/4 cents at $5.40-1/4, after falling on Thursday to its lowest price since Feb. 11 due to gains in the U.S. dollar and poor weekly U.S. export sales reported by the USDA. The smaller-than-anticipated export sales signal that high corn prices are reducing demand, traders said.

CBOT wheat rose 2-1/2 cents to $6.53-1/2 a bushel.

(Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Kirsten Donovan and Matthew Lewis)

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