GRAINS-Wheat and corn find their feet after sell-off

Adds comment, updates prices

CANBERRA, Feb 28 (Reuters) - Chicago wheat and corn futures steadied on Friday after tumbling in the previous session due to projections that U.S. farmers will plant more of both crops this year, concerns that tariffs will impact agricultural trade, and a stronger dollar.

Having hit multi-month highs just last week, wheat futures were heading for their biggest weekly decline since July last year and corn for its biggest weekly fall since July 2023.

Soybeans rose but were set to end the week slightly lower as a huge harvest in Brazil added supply to the market.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.3% at $5.64-1/4 a bushel at 0407 GMT but down 6.6% for the week.

CBOT corn Cv1 rose 0.2% to $4.82 a bushel but was down 4.6% from last Friday's close, while soybeans Sv1 were up 0.6% at $10.43 a bushel and 1.4% lower this week.

Wheat reached an eight-month high of $6.21-1/4 and corn an 18-month peak of $5.13-3/4 last week, supported by expectations that supply will tighten.

But improving crop weather in South America and the passing of cold snaps in the United States and Russia have eased fears about near-term threats to production.

Higher prices are also predicted to lure farmers away from soybeans.

The U.S. Department of Agriculture said U.S. farmers would plant more corn and wheat and less soy in 2025, and a Ukrainian official said his country's soybean and sunflower area would shrink in favour of corn.

Meanwhile, U.S. President Donald Trump said 25% tariffs on Mexican and Canadian goods would begin on March 4 alongside an extra 10% duty on Chinese imports, raising the threat of retaliation against U.S. agricultural exports and boosting the dollar, something that makes U.S. farm goods less competitive.

Commodity funds were again net sellers of CBOT corn and wheat on Thursday, traders said.

Physical wheat prices in cash markets have been stable or higher in recent days, which should provide a floor to futures prices, said a trader in Australia.

"Fundamentals are supported. The tightening of supply should still happen but it will take a bit more time to really appear," he said.