GRAINS-Soybeans set for first weekly drop in a month on dismal Chinese buying

SINGAPORE, Nov 7 (Reuters) - Chicago soybeans firmed on Friday, but the market was on track for its first monthly decline as lower-than-expected Chinese buying sapped investor sentiment.

Corn prices eased and were headed for a weekly loss as the near-complete U.S. harvest and favourable South American planting conditions weighed on the market, while wheat was little changed and was set for modest weekly gains.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 added 0.1% to $11.08-3/4 a bushel, as of 0132 GMT, with prices down 0.6% for the week.

Corn Cv1 fell 0.1% to $4.28-1/2 a bushel and wheat Wv1 was flat at $5.35-1/2 a bushel. While corn has lost 0.7% this week, wheat is up 0.2%.

China has begun modest purchases of U.S. farm products after the leaders of both countries met last week, but traders still await significant soybean buys after the White House said Beijing pledged to buy 12 million tons by year-end.

Caution over soybean demand was reinforced by a lack of any details from a soybean procurement signing ceremony on Thursday held in Shanghai.

Even for wheat, China has booked just two cargoes of U.S. wheat, Reuters reported, suggesting a smaller volume than speculation of several hundred thousand tons.

The wheat market is likely to face headwinds from accelerating exports from Russia, and competition from southern hemisphere exporters Argentina and Australia that are starting their harvests.

Traders are also beginning to focus on the USDA's November supply and demand report, which the department plans to publish next week after skipping its October report due to the ongoing U.S. government shutdown.

MARKET NEWS

Major stock indexes fell sharply on Thursday, with technology and consumer discretionary shares leading losses in the S&P 500, while the British pound firmed after the Bank of England opted against an interest rate cut. MKTS/GLOB

DATA/EVENTS (GMT)

0700 UK Halifax House Prices MM, YY Oct

0745 France Reserve Assets Total Oct

1330 US Non-Farm Payrolls Oct

1330 US Unemployment Rate Oct

1330 US Average Earnings YY Oct

1500 US U Mich Sentiment Prelim Nov