GRAINS-Chicago grains gain as Trump comments on Middle East conflict fail to convince

PARIS/BEIJING, March 27 (Reuters) - Chicago corn, wheat and soybean futures edged higher on Friday as investors reacted cautiously to U.S. President Donald Trump's latest comments on talks to end the month-old Gulf conflict.

Dry conditions affecting part of the U.S. wheat belt and expectations of a possible announcement of revised U.S. biofuel targets later in the day also lent support to prices, traders and analysts said.

A firmer dollar =USD and a backdrop of ample global grain supplies kept prices in check, however.

Trump said on Thursday that talks with Iran to end the war were going "very well" and that he would delay threatened attacks on Iran's energy plants for another 10 days.

After falling overnight, oil prices LCOc1 turned higher on Friday as traders set Trump's comments against Iran's criticism of the U.S. proposals and ongoing disruption to energy markets. O/R

Grain and oilseed prices have broadly tracked fluctuations in crude oil during the conflict, reflecting the use of corn and soyoil in biofuels and knock-on effects on crop production from rising energy and fertiliser prices.

The most active corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 0.5% at $4.66-1/4 a bushel by 1212 GMT. CBOT soybeans Sv1 added 0.1% to $11.74-3/4 a bushel and CBOT wheat Wv1 gained 0.5% to $6.08 a bushel.

"People are not convinced by Trump any more, but you can't ignore him," one European broker said of the latest developments in the conflict.

Grain participants are also adjusting positions before Tuesday's U.S. Department of Agriculture's acreage estimates.

Rising farming costs resulting from the war in the Middle East could shift acreage from corn to soybeans, though analysts say the USDA's recent survey of growers may not fully capture repercussions from the conflict.

"The big question is whether the sharp rise in fertiliser prices caused by the closure of the Strait of Hormuz has already had an impact on the planting intentions reported by farmers," Commerzbank analysts said.

"If this is the case, the corn acreage could be reduced more than expected."

Traders are also monitoring drought in the southern U.S. Plains, with hot weather this week raising the risk of more crop stress before possible rain from next week.

The parched conditions are affecting hard red winter wheat production areas, supporting sharper gains this week for Kansas wheat futures KWv1 compared with Chicago prices.