CORRECTED-GRAINS-Chicago soyoil hits seven-week high on clean fuel tax credit hopes

Corrects the unit of measurement for the soybean oil contract to pounds from bushels, the price

BEIJING, Jan 10 (Reuters) - Chicago soyoil futures jumped to a seven-week peak on Friday, following expectations for President Joe Biden's administration to release short-term guidance on clean fuel tax credits, setting it on course for a 10% weekly jump.

Soybean and corn edged higher, also headed for weekly gains as traders adjusted their positions ahead of the U.S. Department of Agriculture's key supply-and-demand report.

Wheat prices slipped, as traders struggled to find bullish drivers, with a stronger dollar adding pressure.

FUNDAMENTALS

* The most-active soybean oil contract BOcv1 for March delivery on the Chicago Board of Trade (CBOT) rose 3% to 44 cents a pound, up for a fifth session to its highest since Nov. 21.

* Chicago soybean Sv1 rose 0.3% at $10.02 a bushel by 0121 GMT. For the week, the contract has risen 1%, up for a third week.

* Chicago corn Cv1 inched up 0.11% to $4.56-6/8, on course for a 1.3% weekly rise. That would be its sixth weekly gain in seven weeks. Wheat Wv1 fell 0.23% to $5.33 a bushel but is set for a 0.9% weekly gain.

* President Joe Biden's administration expects to release short-term guidance on clean fuel tax credits on Friday and leave final decisions to President-elect Donald Trump's incoming administration, according to two sources familiar with the plan.

* Rains are needed to refresh Argentina's parched soy and corn crops, the Buenos Aires Grain Exchange said on Thursday, which is expected to come within the next week after weeks of hot and dry weather.

* Ahead of Friday's USDA export sales report, analysts expect U.S. wheat sales for the week ending Jan. 2 to range from 150,000-500,000 metric tons, corn from 700,000-1,400,000 tons, and soybeans from 400,000-1,300,000 tons. USDA/EST

* Analysts, on average, expect the USDA to raise its crop estimate for the world's top supplier to a record 170.28 million tons.

* Ongoing uncertainty surrounding U.S. President Donald Trump's trade policies continues to inject volatility into the markets.

* The dollar looked set to extend its longest weekly winning streak in over a year on Friday, underpinned by rising bond yields and expectations of another strong set of U.S. jobs numbers.FRX

* The Taiwan Flour Millers' Association purchased an estimated 114,650 tons of milling wheat sourced from the United States in a tender, European traders said.

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

MARKET NEWS

* U.S. Treasury yields retreated from an eight-month high, while the dollar strengthened against major currencies, as investors re-evaluated the Federal Reserve's interest rate policy for 2025 as the U.S. economy shows signs of resilience. MKTS/GLOB

DATA/EVENTS (GMT)

0400 China Overall Comprehensive Risk Q1

0400 Japan Overall Comprehensive Risk Q1

1330 US Non-Farm Payrolls Dec

1330 US Unemployment Rate Dec

1330 US Average Earnings YY Dec

1500 US U Mich Sentiment Prelim Jan

(Reporting by Ella Cao and Mei Mei Chu; Editing by Rashmi Aich)

((Ella.Cao@thomsonreuters.com;))