GRAINS-Wheat set for biggest weekly rise in 3 months on European supply concerns

Updates prices

SINGAPORE/PARIS, Aug 30 (Reuters) - Chicago wheat edged higher on Friday, with the market poised for its biggest weekly gain in more than three months on short-covering and concerns over lower production in Europe.

Soybeans rose 1% to a three-week high and corn inched higher, with both markets on track for a positive end to the week.

"The wheat market is close to the bottom and there is room for prices to move higher," said one trader in Singapore. "There are ample supplies from the Black Sea region for , but the outlook for global supplies is tightening."

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.2% at $5.49-3/4 a bushel as of 1115 GMT, and corn Cv1 was 0.7% higher at $3.74-1/2 a bushel.

Soybeans Sv1 added 1% to $10.02-1/4 a bushel, climbing to the highest levels since Aug. 9.

The wheat market, which has gained more than 4% this week, is poised for its biggest weekly gain since mid-May. Soybeans are up 3% this week, their biggest weekly rise in four months, and corn has gained 1.7%, its first weekly rise in five.

Short-covering is providing support to wheat, corn and soybean futures after agricultural markets suffered deep losses earlier this month.

For August, soybeans have lost around 2% and corn down 0.6%, with both products in territory for a third straight month.

The European Commission on Thursday cut its estimate for usable production of common wheat in the European Union in 2024/25 to 116.1 million metric tons from 120.8 million forecast a month earlier, still a four-year low.

Ukraine's combined grain and oilseed crop is likely to fall by 15% in 2024 due to unfavourable weather, acting farm minister Taras Vysotskiy said on Thursday, given exact forecast.

U.S. corn and soybean export sales for the week ended Aug. 22 came in above analyst expectations for 2024/25 sales, indicating that low prices may have renewed demand, traders said.

Market players have raised concerns that recent hot, dry weather in the Midwest will dent expectations of bumper U.S. corn and soy crops. However, rainfall and forecasts for milder weather have allayed concerns, traders said.

Commodity funds were buyers of CBOT soybean, soyoil, corn, wheat and soymeal futures contracts on Thursday, traders said. COMFUND/CBT

Prices at 1115 GMT
	Last	Change	Pct Move
CBOT wheat Wv1	545.50	4.00	0.74
CBOT corn Cv1	395.25	4.50	1.15
CBOT soy Sv1	988.75	11.75	1.20
Paris wheat BL2Z4	215.50	2.25	1.06
Paris maize EMAc1	197.25	1.00	0.51
Paris rapeseed COMc1	469.50	8.25	1.79
WTI crude oil CLc1	75.60	1.08	1.45
Euro/dlr EUR=	1.11	0.00	-0.35
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; Editing by Sherry Jacob-Phillips)

((.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: .thukral.thomsonreuters.com@reuters.))