GRAINS-Chicago corn and soybeans bounce off multi-month lows

PARIS/BEIJING, June 27 (Reuters) - Chicago corn and soybean futures rose on Friday from multi-month lows, supported by gains in wider financial markets and signs of progress in U.S.-China trade talks.

Wheat also regained ground after falling in the past four sessions.

Grain market participants were adjusting positions as they turned their attention to U.S. Department of Agriculture acreage and stocks reports on Monday. USDA/EST

However, favourable supply prospects in the United States and worldwide remained a curb on prices.

The most-active soybean contract Sv1 was up 0.3% at $10.19-1/2 per bushel at 1150 GMT, as it climbed off an earlier 2-1/2 month low at $10.13-1/4.

CBOT corn Cv1 gained 1.4% to $4.09-3/4 a bushel to recover from Thursday's eight-month low of $4.02-1/4. CBOT wheat Wv1 added 0.8% to $5.41-1/4 a bushel.

"The U.S. bear market has gradually eased in the absence of major new developments. Market participants are now awaiting USDA reports, particularly the planted acreage report," Argus Media analysts said.

Share and oil prices rose on Friday after Washington announced an agreement with China on how to expedite rare earth shipments to the United States, boosting investor confidence in a de-escalation of the two countries' trade war. MKTS/GLOB

The tariff tussle with China has been a particular concern for the U.S. soybean market, with U.S. exports reliant on China as the world's biggest importer of the oilseed.

Further weakness in the dollar, as investors see chances of bigger U.S. interest rate cuts this year, also helped underpin commodity markets. FRX/

Supply prospects still hung over grains.

Warm weather and rains have created ideal growing conditions for soybeans and corn in the U.S. Midwest, while in Brazil farmers are expected to harvest a bumper second corn crop following a record soybean harvest earlier this year.

In wheat, the International Grains Council raised its 2025-26 world wheat crop outlook by 2 million tons to 808 million on Thursday, while the European Commission increased its forecast for the European Union's soft wheat crop by 1.6 million tons to 128.2 million tons.