SINGAPORE: Chicago soybean futures rose on Friday, although the market was poised for a second straight weekly loss as a key US report showed a smaller-than-expected reduction in supplies.

Wheat was set to post its biggest weekly gain since mid-October on strong demand, while corn was marginally higher for the week after ending lower last week.

"Recent rains in South America have eased some supply concerns but at the same time demand remains strong," said one Singapore-based trader. "Asian buyers have been signing contract to lock in supplies well in advance."

The most-active soybean contract on the Chicago Board of Trade (CBOT) has given up 0.6% this week after losing 2.4% last week.

The market was trading up 0.3% at $11.56-1/2 a bushel on Friday at 0325 GMT.

Wheat was on course for a weekly gain of more than 3%, its biggest since the week ended Oct. 16, while corn was up 0.3% for the week after dropping more than 3% last week.

US soybean supplies will be smaller than previously forecast due to rising demand from domestic processors, the US Agriculture Department (USDA) said on Thursday.

However, the cuts were lower than market expectations.

The government also lowered its forecast for global stockpiles of soybeans due to a reduced crop in Argentina following a months-long dry spell in the country.

Brazil's CONAB also cut its corn and soybean crop outlooks on Thursday, citing dry conditions.

The USDA left its Brazilian crop forecasts unchanged.

Russia is considering imposing a grain export quota and wheat export tax for Feb. 15-June 30, following President Vladimir Putin's criticism of rising food prices, four sources familiar with the government's discussions told Reuters.

Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Thursday and net buyers of wheat and soyoil, traders said.