* Wheat up more than 6 pct this week, biggest such rise in a year * Corn, soybeans gain for 2nd day on short-covering bounce (Adds comment, detail) By Naveen Thukral SINGAPORE, Oct 14 (Reuters) - Chicago wheat climbed for a second session on Friday, with the market poised for its biggest weekly gain in almost a year as strong demand prompted investors to cover short positions. Corn rose nearly 1 percent, adding to Thursday's 3.7-percent rally, while soybeans were little changed after advancing more than 1 percent the last session with gains capped by expectations of record U.S. production. Chicago Board of Trade most-active wheat contract has climbed 6.2 percent this week, the most since the end of October last year. Corn gained 3.7 percent, the biggest weekly climb in more than a month and soybeans were largely unchanged for the week. "There is ample supply of wheat, but the quality of milling wheat is an issue," said Rajesh Singla, head of agriculture research at Societe Generale. "We have problems with the crop in France, Australia is facing adverse weather and the U.S. has some dryness. U.S. wheat market has been oversold and it is trading below the cost of production." Commodity funds were net buyers of CBOT corn, wheat and soybean futures on Thursday, traders said. The funds have held a historically large net short position in CBOT wheat as of Oct. 4, leaving the market vulnerable to short-covering rallies. On Friday, wheat rose 0.7 percent to $4.19 a bushel by 0257 GMT, corn added 0.9 percent to $3.52-1/2 a bushel and soybeans were unmoved at $9.56-1/4 a bushel. Saudi Arabia and Egypt both announced plans to buy wheat. Algeria announced a purchase tender earlier this week, and Syria struck a deal to purchase 1 million tonnes of Russian wheat. Soybean prices face resistance from a record-large U.S. crop. The U.S. Department of Agriculture on Wednesday raised its forecast for U.S. soybean production to 4.269 billion bushels. Grains prices at 0257 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 419.00 3.00 +0.72% +2.89% 402.21 68 CBOT corn 352.50 3.00 +0.86% +2.03% 336.98 67 CBOT soy 956.25 0.00 +0.00% +0.21% 959.73 51 CBOT rice 10.21 -$0.02 -0.20% -1.78% $9.83 63 WTI crude 50.56 $0.12 +0.24% +0.76% $46.92 64 Currencies Euro/dlr $1.104 -$0.016 -1.39% -0.95% USD/AUD 0.7600 0.003 +0.33% +0.24% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Joseph Radford)