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* CBOT wheat notches fifth daily loss in six sessions

* Analysts expect USDA to report June 1 corn stocks up 16.5%

year on year

* Funds may have unwound corn longs too aggressively,

analysts said

By P.J. Huffstutter

CHICAGO, June 26 (Reuters) - Chicago Board of Trade corn and

soybean futures ended lower on Friday, as traders adjusted

positions ahead of the weekend and funds continued to liquidate

their positions, market analysts said.

Earlier in the session, CBOT corn traded both sides of

unchanged, a day after a technical reversal driven by traders'

thoughts that the market might be oversold, analysts said.

However, a hot turn to Midwest weather starting this weekend

supported Chicago grains, which had previously shown little

reaction to a heat wave in Western Europe threatening corn crops

there.

The National Weather Service forecast that temperatures

could reach 100 degrees Fahrenheit (38 degrees Celsius) this

weekend as far north as the upper Midwest and as far east as the

Carolinas. Hotter-than-normal weather is expected from the

Plains to the Atlantic Coast through July 4.

Part of the concern is the timing of a heat wave - and more

importantly, whether extreme heat will continue through July,

when Midwest corn crops typically go through pollination, market

analysts said.

The most-active wheat contract ended lower for the

fifth session in six, as traders continued liquidating their

positions and concerns grew over supply pressures from Northern

Hemisphere harvests, market analysts said. The contract lost

11-3/4 cents at $5.89-3/4 a bushel.

"Wheat just continues to be unimpressive," said Ted

Seifried, chief market strategist for Zaner Ag Hedge.

The most-active CBOT soybean contract ended 3/4 cent

lower at $11.56-1/4 a bushel.

Crude oil prices dropped as supply concerns eased with more oil

tankers exiting the Strait of Hormuz.

The decline in energy prices weighed on soybeans and corn, both

of which are used as feedstocks for biofuels. CBOT corn

settled 1-1/2 cents lower at $4.41-1/2 a bushel.

Traders adjusted positions for the U.S. Department of

Agriculture acreage and stocks reports on Tuesday. Still,

traders showed less interest in making big position moves going

into the weekend, in part from a lack of fresh market-moving

news, said Karl Setzer, partner at advisory firm Consus Ag

Consulting.

"Next Tuesday's acreage and stocks reports will give the

market fresh data to sift through, even if numbers are little

changed from estimates," Setzer said in an analyst note.

USDA is expected to report June 1 wheat stocks were up 9.2% from

a year earlier, a Reuters poll of analysts showed.

USDA is also expected to report that June 1 corn stocks were

up 16.5% from a year earlier and that farmers planted about 95

million acres of corn this spring, Reuters polls showed. The

agency is expected to report that U.S. soybean stocks on June 1

were up about 3.8% from a year earlier and that farmers planted

about 85.4 million acres of soybeans this spring, analysts said.