SINGAPORE, Feb 23 (Reuters) - Chicago corn and soybean futures edged higher on Friday, with bargain-buying lifting prices after both markets dropped to their lowest levels in three years, although plentiful grain supply is likely to cap gains.
Wheat rose for a second session over supply concerns as potential U.S. sanctions against top global wheat exporter Russia could hit flows.
Corn was on track for a fourth weekly decline while soybeans are poised for a tenth weekly drop.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.3% at $11.51 a bushel, as of 0123 GMT, having dropped 1.8% so far this week.
* Corn added 0.3% to $4.07-1/4 a bushel, having lost 2.2% so far this week.
* Wheat, which is set for a weekly gain of 3.6%, was up 0.3% at $5.80-3/4 a bushel.
* Corn and soybean prices dropped to their lowest levels since late 2020 on Thursday.
* Expectations of higher corn and soybeans production in top South American producers - Brazil and Argentina - are weighing on Chicago futures.
* Argentina corn and soybean crops continue to improve due to recent rains, the Buenos Aires grains exchange said on Thursday, with more rainfall expected in coming days after wet weather conditions helped curb damages from a heat wave last month.
* Argentina's Rosario Grains Exchange cut its estimates this week for the country's 2023/24 soybean and corn harvests, but the 49.5 million metric tons of soy and 57 million tons of corn are still a huge improvement on the previous year.
* Following a record-large U.S. corn harvest in 2023, outlooks for rising grain stockpiles and falling Chinese demand for animal feed have spurred speculators to build massive net short positions in corn and soybean futures.
MARKET NEWS
* AI chipmaker Nvidia's stunning results sparked a worldwide wave of record highs in equity markets on Thursday, including the first new peak for Japan's Nikkei since 1989, while bond yields mostly rose as economic data kept immediate hopes of interest rate cuts at bay.
DATA/EVENTS (GMT) 0700 Germany GDP Detailed QQ SA, YY NSA Q4 0900 Germany Ifo Business Climate New Feb 0900 Germany Ifo Curr Conditions New Feb 0900 Germany Ifo Expectations New Feb Feb (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
