SINGAPORE, Oct 20 (Reuters) - Chicago soybeans gained more ground on Friday, with the market on track for a second weekly gain as a drought in the world's No. 1 exporter Brazil supported prices, despite ample supplies from newly harvested U.S. crop entering the market.

Wheat climbed and was poised for a third weekly gain. Corn eased, although futures were set to post a weekly rise.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2% to $12.18 a bushel, as of 0028 GMT. For the week, soybeans are up 3%.

* Wheat gained 0.1% to $5.94-1/2 a bushel and corn lost 0.2% to $5.04-1/4 a bushel. For the week, wheat is up 2.5% and corn has added 2.3%.

* A severe drought that is disrupting grain shipments and slowing soybean plantings in rival exporter Brazil has underpinned prices.

* Some grain shipments on rivers in Northern Brazil have been halted due to a drought that has sent Amazon river tributaries to the lowest level in over a century, according to a note sent to clients on Thursday by shipping services provider Serveporto.

* The El Nino weather phenomenon will last at least through the first half of 2024, according to the latest United Nations forecasts, with abnormal rainfall due across Latin America raising fears for the agricultural sector.

* Almost half of Argentina's 2023/24 wheat crop is in fair to poor condition due to the lack of rainfall currently affecting core agricultural areas, the Buenos Aires Grain Exchange said on Thursday, a 5 percentage point hike from its previous report.

* However, the International Grains Council on Thursday raised its forecast for global wheat production in the 2023/24 season with upward revisions for Ukraine, Russia and the United States outweighing a deteriorating outlook for the crop in Australia.

* Expectations of a bumper corn harvest in the United States are likely to keep a lid on prices.

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

MARKET NEWS

* U.S. stocks slid and 10-year U.S. Treasury yields reached a 16-year high after U.S. Federal Reserve Chairman Jerome Powell said that additional interest rate hikes could be warranted in view of economic resiliency and labour market tightness.

DATA/EVENTS (GMT) 0115 China Loan Prime Rate 1Y, 5Y Oct 0600 UK Retail Sales MM, YY Sept 0600 UK Retail Sales Ex-Fuel MM Sept (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)