GRAINS-Wheat rebounds 4% as recession jitters abate

* CBOT wheat recovers from Wednesday's lowest since mid-Feb

* Corn, soybeans up 2% after also hitting multi-month lows

* Grain markets weighing U.S. weather, Ukraine war(Adds closing prices)

By Tom Polansek

CHICAGO, July 7 (Reuters) - Chicago Board of Trade wheatfutures surged 4% on Thursday, recovering from a 4-1/2-month lowa day earlier, as recession fears in financial markets eased.

Soybean futures climbed 3% and corn rose 2% in their ownmoves away from multi-month lows touched in the previoussession.

Traders said the markets had become technically oversoldfollowing recent declines. They continue to face an uncertainsupply outlook as the Ukraine war disrupts Black Sea grainexports, while U.S. crops enter crucial summer growth phases.

Forecasts for dry weather in the U.S. Midwest through themiddle of July, a critical period for corn development, helpedsupport gains, analysts said.

"The soybean market has looked terrible technically, but themomentum indicators are beginning to turn higher," said TommPfitzenmaier, analyst for Summit Commodity Brokerage. "Weatheruncertainty into the critical August period should supportprices for the time being."

The most actively traded CBOT wheat contract settledup 32 cents at $8.36-1/2 per bushel, after dropping to itslowest since Feb. 17 at $7.85-1/4 on Wednesday.

Most-active soybeans gained 42-3/4 cents to end at$13.65-1/2 a bushel, and corn strengthened 11-1/4 cents tofinish at $5.96-1/4.

Chart support levels, an easing in the dollar from 20-yearhighs and an uptick in crude oil encouraged grain markets tobounce, traders said. U.S. equities also rose, as investors beton economic light at the end of the Federal Reserve's ratehiking tunnel.

Some agricultural traders see the potential for furthergrain rallies given demand from importers and the protractedconflict in Ukraine.

Ukraine's foreign ministry said it will summon Turkey'sambassador after a Russian-flagged cargo ship suspected ofcarrying stolen Ukrainian grain left a Turkish port.

In demand news, Egypt's state grains buyer ramped up directpurchases of imported wheat this week.

On Friday, the U.S. Department of Agriculture is slated toissue weekly U.S. grain export sales data.(Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris andNaveen Thukral in Singapore; Editing by Emelia Sithole-Matarise,Chris Reese and Grant McCool)

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