GRAINS-Wheat rebounds, soybeans firm on higher oil prices

SINGAPORE, May 8 (Reuters) - Chicago wheat gained for the first time in four sessions on Friday, while soybeans inched higher as oil prices bounced back on renewed tensions between the U.S. and Iran.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 rose 0.3% to $6.14-1/4 a bushel, as of 0024 GMT, and soybeans added 0.1% to $11.93 a bushel. Corn Cv1 fell 0.1% to $4.67-1/4 a bushel.

All three products are on track for a weekly decline due to long liquidation amid easing Middle East concerns earlier this week.

The United States and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal while the U.S. said it did not want to escalate.

Market participants are also closely monitoring weather in the drought-hit U.S. wheat belt, where this week's rainfall missed some critically dry areas and may have arrived too late or in insufficient amounts to prevent crop damage elsewhere, analysts said.

However, freezing temperatures caused only minimal frost damage, lowering some weather concerns.

The U.S. Department of Agriculture's weekly report said 31% of the nation's winter wheat crop was in good to excellent condition, up from 30% last week but still the lowest for this time of the year since 2023.

MARKET NEWS

Oil rose and U.S. stock futures slipped in early trade on Friday, after the United States and Iran exchanged fire and put a month-long Middle East ceasefire in doubt. O/R

DATA/EVENTS (GMT)

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