UPDATE 1-Glencore: corn supply tight, wheat abundant in '09

* Good U.S. crop essential to avoid corn, soybean shortage

* Production losses in Argentina due to drought

* Increased corn demand from China, U.S. ethanol industry

* Wheat supply less tight due to big Black Sea, EU crops

* Russia, Ukraine, Kazakhstan have "tremendous" potential

(Adds quotes, details, background)

By Dmitry Zhdannikov

ST PETERSBURG, Russia, June 7 (Reuters) - Commodities trader Glencore [GLEN.UL] said on Sunday global corn and soybean supply will be tight this year and a good U.S. growing season is needed to avoid the kind of shortages seen in 2008, when prices spiked.

Christopher Mahoney, director of Glencore Grain BV, said wheat markets were unlikely to suffer shortages this year due to large crops in the European Union and the Black Sea region, which has the potential to grow substantially in the future. Mahoney, addressing the World Grain Forum in St Petersburg, said it was essential the United States had a good corn-growing season, as corn and soybean supply will be tight.

"This is due to significant production losses in Argentina as a result of drought, increasing soy demand from China, partially because of a stock-building programme, and growing demand in the U.S. for the expansion of the U.S. ethanol industry," he said.

President Dmitry Medvedev said on Saturday Russia would only support the growth of the bioethanol industry from non-food resources. [ID:nL642575]

Chicago corn and wheat futures rebounded last week to eight-month highs, partly due to the weaker U.S. dollar and an increase in fund buying, which was also a catalyst for the surge in grain prices to record highs last year.

"The wheat supply-demand picture is considerably less tight," Mahoney told the forum. "Russia, Ukraine and Kazakhstan all have tremendous production potential, with room to expand both plants area and yields.

"And we expect another good crop from this region, a good crop from the European Union, and weak prices will likely weaken -- at least relative to the other grains." (Writing by Robin Paxton; Editing by David Holmes)