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GRAINS-U.S. futures recover but on track for weekly fall

KUALA LUMPUR, Sept 2 (Reuters) - Chicago corn, wheat and soybean futures were set for a weekly fall, even as prices edged higher on Friday after a sharp drop in the previous session amid mounting concerns about a global economic slowdown.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) rose 0.15% to $6.59 a bushel, as of 0122 GMT, but was down 0.7% on a weekly basis.

* Wheat edged up 0.3% to $7.97 a bushel, but was down 0.8% for the week. Soybeans gained 0.2% to $13.98 a bushel, but were down 4.4% on-week.

* Egypt is in its latest round of talks to buy wheat by direct purchase, traders said, a system that the government has said can provide more attractive prices since the Ukraine war disrupted grain markets. Egypt's state grains buyer held private talks with at least three suppliers on Wednesday, the traders said.

* Egypt's state grains buyer is also believed to have bought 120,000 tonnes of Russian wheat via direct talks with suppliers, traders said.

* Algeria's state grains agency OAIC is believed to have bought about 105,000 tonnes of milling wheat in an international tender which closed on Tuesday and was limited to shipment to two Algerian ports, European traders said on Thursday.

* Meanwhile, Indonesian buyers on Wednesday purchased around 65,000 tonnes of food-quality corn expected to be supplied from either the United States or South America, European traders said on Thursday.

* Three South Korean import groups purchased about 120,000 tonnes of soymeal expected to be sourced from South America, the United States and China in private deals on Thursday without international tenders being issued, European traders said.

* Argentina's wheat harvest in the current 2022/2023 season would benefit from rains expected in a large swath of its planted area in the first half of September during key growth stages, Buenos Aires grains exchange said on Thursday.

* Worries about shipments from the war-torn Ukraine could provide further support to grains futures.

* A cargo vessel carrying more than 3,000 tonnes (3,307 tons) of corn from Ukraine drifted aground in Istanbul on Thursday, halting shipping on Turkey's Bosphorus strait in the first such incident since a United Nations-brokered export deal in July.

* Commodity funds were net sellers of Chicago Board of Trade corn, wheat, soyoil and soybean futures contracts on Thursday and were net even in soymeal futures, traders said.

MARKET NEWS

* September kicked off on a stormy note on Thursday, as persistent worries about rising global interest rates and recessions hounded stocks, bonds and oil prices, and vaulted the U.S. dollar to a 24-year high against the yen.

* Oil prices climbed on Friday on bets that OPEC+ will discuss output cuts at a meeting on Sept. 5, but the benchmarks were still on track to post their worst weekly drop in four on fears COVID-19 curbs in China and weak global growth will hit demand.

DATA/EVENTS (GMT) 1200 Germany Trade Balance July 1500 EU Producer prices MM July 1500 EU Producer prices YY July

(Reporting by Emily Chow; Editing by Subhranshu Sahu)

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