(Adds closing prices in paragraphs 8 and 13)

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Chinese purchases of Argentine soy loom over US market

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US farmers advance soybean and corn harvests

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CBOT corn and wheat futures ease

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Traders await USDA grain stocks report next week

By Tom Polansek

CHICAGO, Sept 26 (Reuters) - Chicago Board of Trade

soybean futures finished slightly higher on Friday but posted a

second weekly loss after China made large purchases of Argentine

cargoes this week, snubbing U.S. supplies.

Wheat and corn futures closed lower.

Soybeans came under pressure this week from China's lack of

demand for the U.S. crop due to tit-for-tat tariffs in the trade

war between Beijing and Washington. U.S. soybean farmers have

been shut out of China, their top export market, during this

harvest season as Beijing's retaliatory tariffs have made their

crops prohibitively expensive for Chinese buyers.

After Buenos Aires briefly suspended grain export taxes

this week, around

40 Argentine soybean cargoes were registered for export in

November and December, mostly headed to China, two traders told

Reuters. These purchases directly eat into the prime U.S.

marketing season.

On Thursday, Argentina reinstated export taxes.

"That news has been digested and the taxes have been

implemented, so soybeans should have seen the bulk of selling

from that news item," said Brian Hoops, president of Midwest

Market Solutions.

CBOT November soybeans SX25 ended 1-1/2 cents higher at

$10.13-3/4 per bushel. The contract dropped about 1.1% for the

week.

When asked if China would purchase U.S. soybeans, a Chinese

commerce ministry spokesperson said Washington

should remove

tariffs on Chinese products that Beijing considered

unreasonable.

The advancing U.S. soy and corn harvests put further supply

pressure on futures prices, though doubts over the size of corn

yields have lent support to that market.

The U.S. Department of Agriculture is slated to issue a weekly

update on harvesting progress on Monday. On Tuesday, the agency

is set to issue quarterly data on U.S. grain stocks.

"Corn is facing an active harvest weekend ahead with

weather turning warmer and drier," Hoops said. "The window

should be wide open for corn and soybean harvest."

CBOT December corn closed down 3-3/4 cents at $4.22

per bushel. December soft red winter wheat closed 7-1/4

cents lower at $5.19-3/4 per bushel.