* Wheat rebounds after hitting another 21-month low
* Short covering helps boost grains to close higher
* European deal will resume transit of Ukrainian grain
April 28 (Reuters) - Chicago grain and soybean futures ended higher on Friday after posting fresh lows earlier as traders anticipated hefty global supplies and kept an eye on weather in the United States.
Bouts of short covering ahead of the weekend lifted contracts after corn, soy and wheat futures all struck multi-month lows this week.
Recent rains in the drought-hit U.S. Plains and forecasts for more have eased concerns about hard red winter wheat, though doubts about the state of the crop in the No. 5 exporter remain.
In a sign more Ukrainian grain may hit the market, the European Commission said it had
reached a deal
in principle to allow the transit of Ukrainian grain to resume through five European Union countries that had imposed restrictions.
But the Kremlin restated its position that the outlook for the Black Sea grain deal is "not very good".
The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 4-1/2 cents to settle at $6.33-3/4 a bushel. It touched $6.24-1/4 earlier in the week, the lowest since July 2021.
CBOT corn settled up 3-1/2 cents at $5.85 a bushel, recovering from $5.72 earlier in the week, a low not seen since July 2022.
Soybeans settled up 15-1/2 cents at $14.19-1/4 a bushel, bouncing back from a dip to $13.96-1/2 in the week, a low not seen since Oct. 2022.
"We did have some good rains last weekend but still the big question is what kind of crop are we going to have in the Southern Plains," said Dale Durchholz, commodity analyst at Grain Cycles.
The corn market has been dented by concerns that a large Brazilian crop was diverting demand from the United States.
A bumper Brazilian soybean crop is also expected to flow onto export markets, offsetting a drought-hit harvest in Argentina. (Reporting by Cassandra Garrison in Mexico City, Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Sherry Jacob-Phillips, Matthew Lewis and Diane Craft)
