PARIS/SINGAPORE, Nov 5 (Reuters): Chicago wheat futures edged up on Friday, underpinned by the prospect of tightening global supplies, while corn and soybeans ticked lower as grain markets looked ahead to U.S. government crop forecasts.
A further rise in the dollar also curbed U.S. grain futures as traders adjusted positions ahead of the U.S. Department of Agriculture's (USDA) monthly supply-demand report on Nov. 9.
The Chicago Board of Trade's (CBOT) most active wheat contract Wv1 was up 0.3% at $7.75-3/4 a bushel at the end of the overnight trading session.
Wheat has fallen from a nine-year high of $8.07 set on Tuesday but remained up slightly over the week.
"Inflationary expectations and supply-demand fundamentals are supportive for wheat prices," said Phin Ziebell, agribusiness economist at National Australia Bank.
Dry growing conditions for recently sown winter crops in Russia and Ukraine have added to supply concerns in top wheat exporting countries after poor spring harvests this year.
Global wheat demand continues to be strong with higher than expected purchases by top buyers led by Saudi Arabia.
However, some traders see scope for a correction in wheat as large expected crops in Argentina and Australia bolster export availability and late-running corn harvests in the northern hemisphere provide fresh grain supplies for livestock feed.
Rain in Argentina over the past week helped to propel 2021/2022 corn sowing and development of wheat crops, the Buenos Aires Grains Exchange said on Thursday.
However, there was concern heavy rain could dent Australia's wheat crop.
Rains in the coming 10 days will bring the risk of knocking over maturing wheat crops in the eastern third of Australia's wheat belt, Commodity Weather Group said in a note.
CBOT corn Cv1 was down 0.2% at $5.58-1/4 a bushel while soybeans Sv1 were 0.6% lower at $12.16 a bushel.
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