GRAINS-Wheat set for seventh straight weekly gain on tightening supply

Adds analyst comment, updates prices

CANBERRA, Feb 21 (Reuters) - Chicago wheat futures were set 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.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.3% at $6.02-1/4 a bushel by 0425 GMT and up around 0.4% from last Friday's close.

CBOT May corn CK25 rose 0.2% to $5.13-1/2 a bushel and was set for a 0.8% weekly gain, its third in a row, while May soybeans SK25 climbed 0.3% to $10.65-1/2 bushel and were up around 1.2% from last Friday.

Earlier this week, wheat surged to $6.21, its highest since last June and May corn reached $5.18-3/4, its highest on a continuous chart of the most active CBOT contract since August 2023.

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.

The International Grains Council (IGC), meanwhile, 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.

However, shipments from Russia, the biggest exporter, are falling and a restrictive government quota came into force this month.

Ukrainian wheat exports have also declined and traders are worried that crops in both nations could emerge from winter in poor condition, said Commonwealth Bank analyst Dennis Voznesenski.

"The direction of prices will depend on how much wheat Russia and Ukraine can export," he said.

Among 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.

Analysts expect soybeans to remain plentiful but corn supply to tighten.