* Grains futures saw multi-month highs in the mid-week session

* Argentina's corn production forecast cut after major drought

* Dry weather conditions in U.S. Midwest remain in focus

SINGAPORE, June 23 (Reuters) - Chicago corn futures edged lower on Friday as traders booked profits after a recent rally over concerns of dry conditions in the key growing areas of the U.S. Midwest, although they were still poised to post weekly gains.

Wheat and soybeans also fell marginally, but wheat was still headed for a weekly gain, while soybeans were set to post a weekly drop.

Corn futures were down 1.9% at $6.09-1/4 a bushel, as of 0441 GMT, after hitting a more than two-month high on Wednesday.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 1.5% at $13.20 a bushel, while wheat futures gave up 0.7% at $7.47-1/4 a bushel after hitting their highest since late-February on Wednesday.

For the week, soybeans were down 1.7%, corn gained about 2.0% and wheat was up 8.6%.

The worst U.S. Midwest drought since 2012 expanded over the past week despite mild temperatures as a lack of rain across the heart of the American farm belt threatened newly seeded corn and soybean crops, climatologists said in a weekly report.

Corn futures fell back in a possible sign of a temporary equilibrium, according to a note from commodities research firm Hightower.

Perhaps the trade has considered the potential for a stabilisation of corn crop conditions from a long list of rain events, the note added.

Argentina's 2022/23 corn production is expected to be 34 million metric tons, down from the 36 million forecast previously, the Buenos Aires grains exchange said on Thursday, as the South American country grapples with the fallout of a major drought.

Russia is 99.9% certain to quit a U.N.-brokered deal on the safe wartime passage of Black Sea grain next month because it no longer needs Ukrainian ports to export ammonia, a senior Ukrainian diplomat said.

Commodity funds were net sellers of Chicago Board of Trade corn, soybean and soymeal futures contracts on Thursday, traders said. The funds were net buyers of CBOT wheat and soyoil futures.

(Reporting by Matthew Chye; Editing by Rashmi Aich and Sohini Goswami)