Wires

GRAINS-Corn edges lower, set for biggest weekly gain in 4 months

SYDNEY, Oct 4 (Reuters) - U.S. corn futures edged lower on Friday, though the grain was poised to post its biggest weekly gain in four months as forecasts for smaller-than-expected stocks underpinned prices.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up more than 4% this week, the biggest weekly rally since June.

* Corn futures on Friday fell 0.2% to $3.88-1/4 a bushel, after closing up 0.3% on Thursday.

* The most active soybean futures are up more than 3% for the week, the biggest weekly gain in the last three weeks.

* The most active wheat futures were little changed for the week, having closed up 0.6% in the previous week.

* The U.S. Department of Agriculture on Thursday morning said that private exporters reported the sale of 130,000 tonnes of U.S. white wheat to China for shipment in the 2019/20 season. It was China's first purchase of the variety, used to make breads and noodles, since March and its largest one-time purchase of U.S. wheat since December 2016, USDA data showed.

* A weekly USDA report released on Thursday showed soybean export sales totalled 2.08 million tonnes in the week ended Sept. 26. Analysts' forecasts for soybean export sales had ranged from 900,000 tonnes to 1.4 million tonnes.

* Weekly corn export sales were 565,100 tonnes, in line with forecasts for 400,000 tonnes to 800,000 tonnes, and wheat export sales were 328,500 tonnes, in line with forecasts for 200,000 tonnes to 600,000 tonnes.

* Corn stocks were 2.114 billion bushels, the USDA said earlier this week, below projections for 2.428 billion and down 1% from a year ago. Wheat stocks were slightly above expectations at 2.385 billion bushels.

MARKET NEWS

* The dollar stepped back on Friday after a soft U.S. service sector survey stoked worries that pressure from U.S. trade disputes with China and other countries could spill over into the broader U.S. economy and tip it into a recession.

* Oil futures edged higher on Friday but were on track for a large weekly loss on fears that slower global economic growth will hurt fuel demand, while Saudi Arabia said it has fully restored oil output after recent attacks.

* A rally in U.S. stocks fizzled, leaving major indexes with modest gains on Friday, as Wall Street was torn between hope that U.S. economic data signals better times ahead and fear Europe's debt crisis will engulf world economies.

Grains prices at 0005 GMT

Contract Last Change Pct chg MA 30 RSICBOT wheat 488.25 -0.50 -0.10% 479.26 51CBOT corn 388.00 -0.75 -0.19% 370.33 67CBOT soy 911.25 -0.50 -0.05% 882.17 63CBOT rice 11.72 $0.00 +0.00% $11.94 34WTI crude 52.50 $0.05 +0.10% $56.03 23

Currencies

Euro/dlr $1.098 $0.001 +0.10%USD/AUD 0.6745 0.000 +0.06%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Colin Packham; editing by Uttaresh.V)