GRAINS-Soybeans slip from near two-year high, corn gains on pre-weekend positioning

By Karl Plume

CHICAGO, March 13 (Reuters) - U.S. soybean futures weakened on Friday in a profit-taking setback after hitting a near two-year high in the previous session on surging crude oil prices, while corn firmed as traders squared positions ahead of the weekend.

Wheat advanced on end-of-week speculative buying, and as dry conditions and forecasts for a drop in temperatures in the Plains wheat belt sparked concerns about the winter crop.

Grain markets remained on edge as the U.S.-Israeli war with Iran neared the two-week mark and as crude oil prices hovered near four-year highs.

Higher crude prices can support crop futures as part of commodity investment flows driven by geopolitical and economic factors, and as corn and soyoil are used to produce biofuel. O/R

"People are positioning, just going to wait and see what happens over the weekend with the war," said Jack Scoville, analyst at The Price Futures Group.

"If the situation calms itself over the weekend, we could be significantly lower first of next week. But if it heats up and petroleum continues to rally, we could be significantly higher."

Traders are awaiting a meeting this weekend between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng to gauge prospects for a planned visit by Presidents Donald Trump and Xi Jinping at the end of March.

Chinese imports of U.S. soybeans are a major issue as the geopolitical rivals pursue protracted trade talks.

Chicago Board of Trade May soybeans SK26 were down 8-1/2 cents at $12.18-3/4 a bushel at 12:35 p.m. CDT (1735 GMT), on pace for a sixth straight weekly gain.

May corn CK26 was up 2-1/2 cents at $4.65 a bushel, eyeing a third consecutive weekly advance.

CBOT May wheat WK26 gained 12-3/4 cents to $6.11-1/4 a bushel. The contract was up for a third straight session but remained on pace for a weekly decline.