CANBERRA, Aug 25 (Reuters) - Chicago wheat prices edged higher on Friday, as hot and dry weather in the United States and other key exporting countries raised the prospect of lower yields.
Soybeans gained ground, with the market poised for a second week of gains as adverse weather is likely to trim U.S. output.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.5% to $6.35 a bushel at 0119 GMT. Soybeans added 0.1% to $13.72-1/2 a bushel and corn lost 0.2% to $4.87-1/4 a bushel.
* For the week, soybeans are up more than 1% while corn and wheat are down marginally.
* The U.S. spring wheat crop is suffering with dry weather in northern Plains likely to reduce yields.
* Argentina's current wheat crop needs precipitation in the coming days across key farmland in order to stave off a hit to yields, a weekly report from the Buenos Aires Grains Exchange showed on Thursday.
* Prolonged heat across many Ukrainian regions has dried the upper soil level, creating unfavourable conditions for the forthcoming winter grain sowing, analysts at APK-Inform quoted state weather forecasters as saying on Thursday.
* The European Commission further reduced its outlook for European Union production of major cereal and oilseed crops this season, with maize seeing the sharpest reduction.
* The commission lowered its forecast for 2023/24 EU usable maize production to 61.7 million metric tons (mmt) from 63.0 mmt projected in July. It cut its forecast for 2023/24 usable soft wheat to 126.1 mmt from 126.4 mmt in July.
* In the soybean market, forecasts of hot and dry weather raised crop concerns.
* Soybeans are susceptible to extreme temperatures with a lack of rainfall forecast for next several weeks. The crop is its crucial stage of development.
* This week's Midwest crop tour has generally shown soy and corn potential above last year's but mixed levels compared with the average of recent years.
* Illinois soybean pod counts and corn yield prospects are above last year and the three-year average, scouts on an annual Midwest crop tour found on Wednesday, limiting gains.
* Commodity funds were net buyers of CBOT soybean and soymeal futures contracts, and net sellers of corn, wheat and soyoil futures contracts on Thursday, traders said.
MARKET NEWS
* World stocks fell on Thursday as investors took a breather after a rally sparked by blockbuster results from tech darling Nvidia, while Treasury bond yields edged back higher following a big sell-off.
DATA/EVENTS (GMT) 0600 Germany GDP Detailed QQ SA, YY NSA Q2 0800 Germany Ifo Business Climate New Aug 0800 Germany Ifo Curr Conditions New Aug 0800 Germany Ifo Expectations New Aug 1000 France Unemp Class-A SA July 1400 US U Mich Sentiment Final Aug (Reporting by Peter Hobson; Editing by Rashmi Aich)
