Wheat set for worst week in nearly 3 months on supply outlook



CANBERRA, Dec 3 (Reuters) - U.S. wheat futures held steady on Friday but were on track for their biggest weekly drop in nearly three months on expectation of ample global supplies.

FUNDAMENTALS

* The most-active wheat futures on the Chicago Board Of Trade Wv1 were down nearly 3% for the week, the biggest weekly fall since Sept. 10.

* Wheat was up 0.2% by 0238 GMT, adding to Thursday's 3.1% jump.

* The most-active soybean futures Sv1 were down nearly 0.5% for the week, heading for their second straight weekly fall.

* The most-active corn futures Cv1 were down nearly 2% for the week after finishing up 3% in the previous week.

* Wheat prices have soared in recent weeks as the possibility of more Russian export restrictions and the risk of rain damage to Australia's crop fanned fears of tight milling wheat supplies.

* However, global supply worries have eased in recent days on signs of a stabilising U.S. crop, and Australia's chief commodity forecaster, ABARES, revising its official estimate for the 2021/22 crop to a record 34.4 million tonnes.

* Saudi Arabia said it was seeking 535,000 tonnes of wheat in a tender, after Egypt on Monday bought 600,000 tonnes in its biggest purchase in years. Tunisia and Jordan also made purchases.

* Chinese importers bought 130,000 tonnes of U.S. soybeans, the U.S. Department of Agriculture said, confirming deals reported by Reuters on Wednesday. Exporters struck deals to sell another 164,100 tonnes of U.S. soy to undisclosed buyers, the agency said.

MARKET NEWS

* The dollar ticked higher on Friday amid a broadly calmer tone in markets as fears over Omicron's impact eased, but currency moves were muted ahead of a key U.S. payrolls report that could clear the path to earlier Federal Reserve interest rate hikes.

* Oil prices climbed, extending gains after OPEC+ said it would review supply additions ahead of its next scheduled meeting if the Omicron variant hits demand, but prices were still on course for a sixth week of declines.

* A broad rally sent Wall Street to a sharply higher close on Thursday, recovering ground lost over recent sessions as market participants snapped up bargains while digesting the implications of a shifting pandemic.


Reporting by Colin Packham; Editing by Subhranshu Sahu

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