SINGAPORE, July 7 (Reuters) - Chicago corn rose on Friday, with the market poised for its first weekly gain in five weeks on concerns over dry weather reducing yields in the U.S. grain belt, although expectations of rains in some rains limited the upside in prices.
Wheat and soybeans eased.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board of Trade (CBOT) added 0.4% to $5.08-1/4 a bushel, as of 0029 GMT, wheat fell 0.5% to $6.54-1/2 a bushel and soybeans gave up 0.3% to $13.35-3/4 a bushel.
* For the week, corn has gained almost 3%, after four weeks of decline, wheat is up 0.7% and soybeans are down half a percent.
* Further showers and mild temperatures are expected in the central and southern Midwest over the next two weeks, aiding corn that is entering its crucial pollination phase. However, Northern crop areas may remain stressed amid forecasts for below-normal precipitation.
* Weekly U.S. Drought Monitor data showed marginal improvement in parts of the corn belt and further deterioration in others. As of July 4, 60% of soybeans and 67% of corn remain affected by drought, down 3 points from a week earlier.
* This year's French soft wheat harvest is expected to show a yield 5% above the 10-year average, helped by good sowing conditions and regular rains in early spring, crop institute Arvalis and grain industry group Intercereales said on Thursday.
* Fresh rains in the south of Argentina's agricultural region have delayed wheat sowing in the last week, the Buenos Aires grains exchange said on Thursday.
* Commodity funds were net sellers of CBOT wheat, soybean, soymeal and soyoil futures contracts on Thursday, and net buyers of corn futures, traders said.
MARKET NEWS
* MSCI's global index of stocks fell on Thursday while Treasury yields rose as a surge in U.S. private payrolls prompted concerns that interest rates would stay higher for longer.
DATA/EVENTS (GMT) 0600 Germany Industrial Output MM May 0600 Germany Industrial Production YY May 0600 UK Halifax House Prices MM, YY June 0645 France Reserve Assets Total June 1230 US Non-Farm Payrolls June 1230 US Unemployment Rate June (Reporting by Naveen Thukral; Editing by Rashmi Aich)
