SINGAPORE, July 21 (Reuters) - Chicago wheat futures ticked lower on Friday, although the market is poised for its biggest weekly gain in more than 16 months as Russian attacks on Ukrainian ports raised worries over global supply.
Corn fell more than 1% and soybeans also lost ground, although both markets are on track for weekly gains on outlooks for hot and dry weather in key growing areas of the U.S. Midwest.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.4% at $7.24-1/4 a bushel, as of 0012 GMT, corn fell 1.3% to $5.39 a bushel and soybeans gave up 0.6% to $13.96-3/4 a bushel.
* For the week, wheat rose 9.5% and is poised for its biggest weekly gain since March 2022, corn added more than 5% and soybeans have gained almost 2%.
* Renewed concerns over supplies from the Black Sea region underpinned wheat prices.
* Ukraine's Defence Ministry said on Thursday it would consider all ships travelling to Russian ports and Ukrainian ports on the Black Sea that are occupied by Moscow as potential carriers of military cargo from July 21.
* It came a day after the Kremlin said ships heading to Ukraine's Black Sea ports could be considered military targets.
* Russia has jolted world grain markets with an escalation in the Black Sea, mounting three nights of air strikes on Ukrainian ports.
* The International Grains Council on Thursday raised its forecast for 2023/24 global corn production by nine million metric tons to 1.22 billion metric tons, largely reflecting an improved outlook in the United States.
* The inter-governmental body, in a monthly update, forecast U.S. corn production at 383.7 million metric tons, up from a previous projection of 373.4 million tons.
* Rains that have slaked Argentina's drought-hit farmlands have allowed soil moisture to recover and 71% of the area planned for wheat harvesting has now been planted under fair water conditions, the Buenos Aires Grains Exchange said on Thursday.
* Commodity funds were net sellers of CBOT corn, soybean, wheat and soymeal futures contracts on Thursday, traders said. The funds were net buyers of CBOT soyoil futures.
MARKET NEWS
* The dollar rallied and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the Federal Reserve will keep interest rates higher for longer to curb inflation.
DATA/EVENTS (GMT) 0600 UK Retail Sales MM, YY June 0600 UK Retail Sales Ex-Fuel MM June (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
