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GRAINS-Soybeans set for 2nd weekly gain on tightening supplies

* Soybeans up 8% in 2 weeks of gains on strong Chinese demand

* Corn, wheat fall nearly 1%; both markets set for weekly fall (Adds quote in paragraph 3, details on Chinese demand, fund positions)

SINGAPORE, Nov 13 (Reuters) - Chicago soybean futures ticked lower on Friday, but the market was on track for a second weekly gain because of strong demand from top importer China.

Corn slid and the market was poised for a weekly loss on concerns over ethanol demand as coronavirus lockdowns reduce fuel consumption, while wheat fell for a third consecutive session.

“The scale of COVID-19 lockdowns in the U.S. and the downside to ethanol production are a real concern for the corn market,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “Weather issues also continue to create more turbulence for the market.”

The most-active soybean contract on the Chicago Board Of Trade (CBOT) is up almost 8% in two weeks of gains. The market was down 0.5% at $11.40-1/4 a bushel, as of 0348 GMT.

The contract hit a June 2016 high of $11.62-1/4 a bushel earlier this week.

Corn is down about half a percent this week after a 2.1% gain last week, and wheat has lost more than 3% for the week after rising 0.6% last week.

China has stepped up imports of feed grains, tightening global supplies.

Chinese feed producers, pig farmers and traders are reshaping the global grain market as they scour the world for supplies amid a domestic shortfall that sent local corn prices to record highs and is expected to fuel global food inflation in 2021.

The U.S. Department of Agriculture (USDA) forecast 2020/21 U.S. corn season-ending stocks at 1.702 billion bushels, against analyst forecasts of 2.033 billion.

The USDA earlier this week lowered its estimate of the U.S. 2020/21 soybean yield to 50.7 bushels per acre, below the lowest in a range of trade expectations.

The USDA’s tighter estimates for U.S. soybean and corn supplies put more attention on production prospects in South America, with persistent dryness in parts of Brazil and Argentina causing concern.

The Rosario Grains Exchange estimated Argentina’s wheat harvest at a five-year low of 16.7 million tonnes.

Commodity funds were net sellers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Thursday, traders said. (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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