SINGAPORE, June 1 (Reuters) - Chicago wheat futures gained more ground on Thursday, as the market continued to recover from last session's lowest in more than two years on bargain buying and concerns over rains damaging China's wheat crop.

Soybeans and corn prices rose with dryness forecast for the newly planted crops in the U.S. Midwest.

 

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.4% to $5.96-3/4 a bushel, as of 0114 GMT, after dropping to its lowest since December 2020 on Wednesday.

* Soybeans added 0.4% to $13.04-3/4 a bushel and corn gained 0.3% at $5.95-3/4 a bushel.

* Wheat prices are recovering after suffering deep losses, which were driven by ample global supplies and a lack of demand for U.S. cargoes.

* However, excessive rains have damaged the wheat crop in China, the world's biggest consumer, which has already been buying record volumes from the international market since the beginning of the year.

* China's agriculture ministry is urging local authorities to speed up the harvesting and drying of damaged grain, after heavy rain flooded fields of ripe wheat in the country's most important growing region.

* Authorities should send emergency teams to drain water from fields, speed up access by harvesters and mobilise drying machinery to save as much of the crop as possible, the ministry said late on Tuesday.

* In the Black Sea region, the U.N. has proposed that Kyiv, Moscow and Ankara start preparatory work for the transit of Russian ammonia through Ukraine as it tries to salvage a deal allowing safe Black Sea grain exports, a source close to the talks said on Wednesday.

* Concerns over dry weather are emerging in the U.S. Midwest for corn and soybeans.

* The U.S. Department of Agriculture on Tuesday rated 69% of the U.S. corn crop in good-to-excellent condition, down from 73% a year ago and below an average of analyst estimates for 71%.

* Commodity funds were net sellers of CBOT soybean, corn and wheat futures contracts on Wednesday, and net even in soymeal and soyoil futures, traders said.

 

MARKET NEWS

* Global equities and U.S. Treasury yields were lower on Wednesday as risk-off sentiment dominated markets, with investors focused on a much-anticipated vote in Congress on raising the U.S. debt ceiling.

 (Reporting by Naveen Thukral; Editing by Varun H K)