SINGAPORE  - U.S. wheat futures rose for a second session on Thursday as the market was supported by dry weather reducing production in top exporters Russia and Australia.

Soybeans ticked lower as U.S.-China trade dispute is adding pressure on the market, which dropped to its lowest in almost 10 years on Tuesday.

The most-active wheat contract on the Chicago Board of Trade gained 0.1 percent to $4.99-3/4 a bushel by 0230 GMT after rising more than 2 percent in the last session.

Soybeans eased 0.1 percent to $8.89 a bushel while corn gave up 0.3 percent to $3.53-1/4 a bushel.

Wheat futures are being supported by dry weather cutting production in Russia, the world's biggest exporter, and Australia, the No.4 supplier.

Dryness in Russia and Australia comes after lack of rains reduced production of Hard Red Winter wheat in the U.S. southern Plains.

"We expect the global wheat market to transition from comfortable to balanced supply conditions during the 2018 season," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"Prices have now fallen to levels that we would think of as the low compared to where we expect prices to be by season end."

The soybean market is facing headwinds from escalation in U.S.-China trade spat.

U.S. President Donald Trump has threatened to impose a 10 percent tariff on another $200 billion of Chinese goods. China's commerce ministry described the threat as "blackmailing" and said Beijing would fight back.

Trump's threat followed his administration imposing tariffs on $50 billion of Chinese goods last week, which triggered retaliatory tariffs by Beijing on a slate of U.S. products, including soybeans and corn.

Tuesday's sell-off in soybeans was also driven by generally favourable weather in the Midwest crop belt that has bolstered expectations for big U.S. corn and soy harvests.

However, there is uncertainty about forecast for July and August, which are crucial months for U.S. crop development.

Commodity funds were net buyers of CBOT wheat and soyoil futures contracts on Wednesday and net sellers of soybeans, soymeal and corn, traders said.           

(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips and Gopakumar Warrier)

© Reuters News 2018