GRAINS-Wheat eyes seventh straight weekly gain on tighter supply outlook

CANBERRA, Feb 21 (Reuters) - Chicago wheat futures were on track for their seventh consecutive weekly gain on Friday, supported by expectations of tighter supply despite prices losing momentum in recent days as concerns eased that U.S. crops could be damaged by cold weather.

Corn and soybeans also climbed and were up this week, with prices supported by adverse weather reducing the production outlook in South America.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.3% at $6.02-1/4 a bushel, as of 0223 GMT, and was up around 0.4% from last Friday's close.

CBOT corn Cv1 rose 0.2% to $4.99 a bushel and was set for a 0.6% weekly gain, its third in a row, while soybeans Sv1 climbed 0.1% to $10.46-3/4 bushel and were up around 1% from last Friday.

Earlier this week, wheat surged to $6.21, its highest since June last year, and corn reached $5.05, its highest since October 2023. Soybeans have lost ground since hitting a 6-1/2-month high of $10.80 early this month.

Most of the U.S. winter wheat crop has an adequate layer of snow to protect it from icy temperatures, a U.S. Department of Agriculture weather report said, and temperatures are expected to rise in the coming days.

Meanwhile, the International Grains Council (IGC) raised its forecast for global 2024/25 wheat production by 1 million metric tons to 797 million tons due in part to a larger crop in Kazakhstan.

Global wheat demand has been lacklustre in recent months but shipments from Russia, the biggest exporter, are falling and a restrictive government quota came into force this month.

In other crops, the IGC cut its estimates for global 2024/25 corn production by 3 million tons and soybean output by 2 million tons due to worsening crop prospects in South America.

Heat is returning to Argentina's drought-hit cropping zones, with temperatures forecast above 35 degrees Celsius (95°F) in some places, though some rain should fall next week, the Buenos Aires Grains Exchange said.

While soybeans should remain plentiful, analysts expect corn supply to tighten.

Traders are predicting that rising corn prices will encourage U.S. farmers to expand plantings this spring. Agricultural lender CoBank said U.S. corn plantings would increase by 4% this year and soy and wheat area would fall.

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