GRAINS-Wheat rises, set for weekly gain as US Plains drought hits crops

CANBERRA, May 1 (Reuters) - Chicago wheat futures rose on Friday after a week of whipsawing price action, putting the benchmark contract on track for a third straight weekly gain as dry conditions damaged crops in the U.S. Plains.

Corn and soybean futures also rose.

FUNDAMENTALS

The most-traded wheat contract on the Chicago Board of Trade Wv1 rose 0.9% to $6.42-1/2 a bushel at 0147 GMT and was headed for a 4.2% weekly rise.

CBOT corn Cv1 added 0.4% to $4.76-3/4 a bushel and soybeans Sv1 climbed 0.5% to $12.01-1/4.

CBOT wheat advanced to $6.71-1/2 on Wednesday, its highest since June 2024, but shed 35 cents by Thursday's close, with large amounts of speculative money washing in and out again, according to traders.

A drop in oil prices, technical selling and forecasts for rain in the U.S. Plains helped trigger the pullback. However, analysts said yield losses have already occurred in many U.S. cropping areas, keeping upward pressure on prices. Year-to-date, CBOT wheat is up 27%.

However, global wheat supplies remain plentiful. The European commission cut its estimates for EU exports this season and next on Thursday, but consultants Sovecon raised their forecasts for Russian shipments.

The condition of French cereal crops worsened from the previous week, data from FranceAgriMer showed, though crops were in better shape than a year earlier, with 81% rated good or excellent.

MARKETS NEWS

Asian share markets rebounded in relief on Friday as oil prices came off the boil and upbeat company earnings pulled investors into tech stocks, while Japan's first yen-buying intervention in two years steadied the battered currency. MKTS/GLOB