GRAINS-Corn and soybeans ease as dollar recovers while wheat holds steady

Jan 30 (Reuters) - Chicago corn and soybean futures fell on Friday, pressured by a rebound in the U.S. dollar, while wheat held steady with support from winter weather risks in the northern hemisphere.

Market participants were adjusting positions at the end of the month and after a volatile trading week marked by a four-year low for the dollar and record-high precious metal prices. MKTS/GLOB

Grains and oilseed prices climbed to multi-week highs this week on the back of a weaker dollar, but ample global supply has kept gains in check.

The most-active wheat contract on the Chicago Board of Trade (CBOT) wheat Wv1 was unchanged on the day at $5.41-1/2 a bushel by 1146 GMT, trading near Thursday's eight-week peak of $5.44-1/4.

CBOT soybeans Sv1 fell 0.6% to $10.66 a bushel after reaching a near seven-week top on Thursday, while corn Cv1 shed 0.6% to $4.28-1/4 a bushel following a two-week high on Thursday.

The dollar index =USD continued its recovery on Friday, supported by reports that U.S. President Donald Trump could name on Friday former Federal Reserve Governor Kevin Warsh as the new head of the central bank. FRX/

Investors view Warsh as more hawkish on interest rates than other candidates for the post. Market jitters over Trump's policymaking, including his criticism of the Fed, had fuelled the dollar's recent slide.

"The U.S. dollar recovering a shade has taken the edge off U.S. grain and oilseed prices," said Tobin Gorey, founder of agricultural consultants Cornucopia.

Movements in the dollar affect the competitiveness of U.S. crops overseas and can influence export demand.

Chicago wheat has also drawn support from short-covering by investment funds and bouts of severe cold in wheat belts in the United States and the Black Sea region.

After extreme cold in the U.S. Plains in the past week, forecasts of deep frosts in Ukraine next week that could cause crop damage were being monitored by traders.

"Agricultural products ... remain penalised by ample global supply," Argus Media said in a note. "The weather risk is nevertheless surging, between excessive cold in North America and the Black Sea and excessive heat in Argentina."

In Argentina, recent rains improved soil moisture in parts of the country but corn and soy crops still need more rainfall to avoid yield losses, the Buenos Aires Grain Exchange said on Thursday.

The prospect of record soybean production in Brazil, where harvesting is in its early stages, was nonetheless tempering concern about Argentina.