SYDNEY: US wheat futures rebounded on Friday from sharp losses in the previous session, as the grain closed in on its biggest weekly gain in nearly two months on expectations of strong buying from China amid planting and harvesting delays in the US Midwest.
Soybeans fell, though, under pressure from concerns over a clamp-down on credit in China that has push the oilseed to its biggest two-day loss in four months.
China is the biggest buyer of soybeans, and the oilseed is sensitive to news that might affects its buying.
Corn also fell but was set to finish the week with its biggest gain in a month.
Chicago Board Of Trade July wheat rose 0.32 percent to $7.02-3/4 a bushel by 0323 GMT, having closed down 0.9 percent in the previous session. The grain is up more than 3.1 percent for the week, the biggest climb in seven weeks.
"There are rumours that China will be entering a buying mode to stock up their reserves," said Vyanne Lai, agribusiness economist at National Australia Bank.
"China has bought French wheat as US wheat was more expensive, but at around the $7.00 a bushel level, China may consider buying from the US"
China made a rare purchase of about 200,000 tonnes of wheat from France, European traders said on Wednesday.
Wheat has drawn additional support this week because planting of the US spring crop and harvesting of winter wheat are behind schedule, according to the US Department of Agriculture, meaning supplies could be curtailed.
December corn fell 0.3 percent to $5.59 a bushel after falling 1.8 percent in the previous session. It is still up more than 4.5 percent for the week, the best weekly performance since the last week of May.
November soybeans fell 0.43 percent to $12.79-1/2 a bushel, having closed down nearly 2 percent on Thursday. Over Thursday and Friday soybeans have lost about 2.5 percent, the biggest two-day loss since February.
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