Wheat recovers on demand hopes while corn and soybeans hold near lows

PARIS/CANBERRA, Oct 2 (Reuters) - Chicago wheat futures edged up for a second session on Friday, recovering further from a seven-week low, as a Saudi Arabian import tender boosted demand sentiment, though a rising dollar continued to cap US prices.

Corn futures dipped to hold near a six-week low as Wednesday's larger than expected USDA estimate of US corn stocks hung over the market.

Soybeans slipped, too, under pressure from an ongoing US harvest that is projected to be the biggest on record.

Investors were also awaiting monthly US jobs data for a pointer to possible US interest rate rises. MKTS/GLOB

The most traded wheat contract on the Chicago Board of Trade was up 0.7% at $6.87-3/4 a bushel by 1155 GMT, moving away from Thursday's seven-week low of $6.70-3/4.

Saudi Arabia on Thursday announced it is seeking to buy 535,000 metric tons of wheat for shipment in November and December. Traders viewed the tender as a sign that the recent price fall was stirring fresh demand after Saudi Arabia cancelled its previous wheat tender on September 7 because of high prices.

A surge in the dollar index to its highest in more than a year, however, has restrained US prices. The currency strength makes dollar-denominated commodities more expensive for overseas buyers. FRX/

Wheat futures on Euronext rose more sharply as the euro weakened , lifting benchmark December prices by 1.7%, with additional support from expectations that European origins could win sales in the Saudi tender. GRA/EU

A lack of progress in diplomatic efforts to restore normal shipping through the Black Sea also underpinned wheat prices.

Russian President Vladimir Putin on Thursday rejected proposals for a truce in Black Sea attacks.

"If the Black Sea remains closed, it's a problem that will push up prices," said Commonwealth Bank analyst Dennis Voznesenski.

Grain consultancy Sovecon said on Wednesday that it had cut its forecast for Russia's 2026/27 wheat exports by 4.7 million tons to 36.7 million tons, warning that Azov and Black Sea ports will remain shut until 2027.

CBOT corn was down 0.4% at $5.00-1/4 a bushel, holding near Thursday's six-week low of $4.95. CBOT soybeans lost 0.6% to $12.76-3/4 a bushel after touching a five-week low at $12.73-1/4.

Drier weather forecast in the US Midwest could help to limit harvest delays after recent rain, analysts said.