Wheat firms on supply woes, dismal demand for US shipments curbs gains

* Wheat edges higher on Black Sea supply woes, Australian output

* Lack of demand for US wheat limits gains in Chicago futures

SINGAPORE, June 7 (Reuters) - Chicago wheat futures ticked higher on Wednesday, underpinned by concerns over Black Sea supplies and lower output in Australia, although a lack of demand for U.S. cargoes kept prices below the previous session's near three-week high.

Soybeans and corn firmed, as dryness for newly planted crops in the U.S. Midwest threatened yields.

"There are some supply issues emerging, but U.S. wheat is struggling to find business, which has limited the upside in prices," said one Singapore-based grain trader.

The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.2% to $6.28-3/4 a bushel, as of 0209 GMT. On Tuesday, it climbed to its highest since May 17 at $6.48.

Soybeans added 0.3% at $13.57-1/4 a bushel and corn gained 0.1% at $6.08-3/4 a bushel.

Stiff competition in the wheat export market is weighing on Chicago futures.

The lowest offer presented at an Egyptian state purchasing tender for wheat on Tuesday was $229 per tonne for 55,000 tonnes of Russian wheat on a free-on-board basis, traders said. No U.S. wheat was offered in the tender.

However, a forecast of lower output in Australia, the world's second-largest exporter, lent some support.

Australia's production of winter crops is set to fall from record highs, with wheat output seen declining more than 30%, the country's agricultural department said, as forecasters predict dryness due to the El Nino weather pattern.

Wheat and barley production will drop by 34% and 30% to 26.2 million tonnes and 9.9 million tonnes, respectively. Both figures are below the 10-year average.

Russia's foreign ministry said on Monday it saw no prospects for extending the Black Sea grain export deal, which is set to expire in mid-July, Russian news agencies reported.

Dry weather in parts of the U.S. Midwest is supporting soybean and corn prices.

Private exporters reported the sale of 165,000 tonnes of soybeans for shipment to Spain in the 2022/23 marketing year, the U.S. Agriculture Department said on Tuesday morning.

Commodity funds were net buyers of CBOT corn, soybean, wheat and soyoil futures contracts on Tuesday, and net sellers of CBOT soymeal, traders said. (Reporting by Naveen Thukral; Editing by Rashmi Aich and Subhranshu Sahu)