GRAINS-Corn hits 18-month high on tight supplies prospects

Adds analyst comment, updates prices

PARIS/CANBERRA, Feb 21 (Reuters) - Chicago corn futures hit an 18-month high on Friday on prospects of tighter corn supplies, while wheat futures were set for a weekly gain, supported despite prices losing momentum in recent days as concerns eased about cold weather damage to U.S. crops.

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

The most-active corn contract Cv1 on the Chicago Board of Trade (CBOT) dropped 0.2% to $5.12-1/4 a bushel by 1230 GMT, after hitting $5.13-1/4, a price last seen in August 2023. The contract has gained 12% since the start of the year.

Wheat Wv1 was up 0.9% at $6.05-3/4 a bushel on Friday after hitting its highest since June earlier in the week, while soybeans Sv1 lost 0.3% to $10.60-1/2 a bushel. They were still up around 2.4% from last Friday.

Traders will review weekly U.S. grain and soy export sales data later on Friday. Analysts expect weekly 2024-25 export sales of 900,000 to 1.6 million metric tons for corn and 100,000 to 500,000 metric tons for soybeans, according to a Reuters poll .

On the supply side, the International Grains Council (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.

For wheat, it raised its forecast by 1 million metric tons to 797 million tons due in part to a larger crop in Kazakhstan.

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.