GRAINS-Corn heads for biggest weekly gain since May 2023

CANBERRA, April 11 (Reuters) - Chicago corn futures rose on Friday and were on track for their biggest weekly gain in nearly two years after U.S. President Donald Trump paused some of his tariff increases and the U.S. Department of Agriculture (USDA) tightened its supply outlook.

Soybean futures were flat but were still set to end the week more than 5% higher after delays to U.S. tariffs and European Union counter-tariffs eased concerns over U.S. crop exports.

A sharply weaker U.S. dollar also lent support by making U.S. farm goods more competitive on global markets.

Wheat futures rose and were headed for a weekly increase despite the USDA raising its estimate of U.S. wheat ending stocks.

Soybeans and wheat are now trading around their levels before Trump's barrage of tariff announcements last week, while corn is higher.

The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 0.4% at $4.84-3/4 a bushel at 0538 GMT and 5.3% higher this week, its biggest weekly gain since May 2023.

CBOT soybeans Sv1 were almost unchanged at $10.28-3/4 a bushel. Their 5.3% weekly gain is the steepest since September 2024.

Wheat Wv1 rose 0.6% to $5.41-1/4 a bushel and was up 2.3% from last Friday's close.

The U.S. dollar index slipped to its weakest since July 2023. .DXY FRX/

The USDA on Thursday tightened its outlook for U.S. corn and soybean supply, cutting its estimates for 2024-25 U.S. corn ending stocks estimate to 1.47 billion bushels from 1.54 billion and for U.S. soybean stocks to 375 million bushels from 380 million.

Both estimates are below most analysts' expectations, according to a Reuters poll.

The USDA also reduced its prediction for global end-of-season corn stocks but raised its estimate for global soybean stocks.

"I still don't think there's a lot of upside," said a source at a major trading firm in Australia of corn and soybeans.

The markets still face the risk of more tariffs, economic growth and demand for crops is sure to weaken, particularly in China, and the United States should harvest large crops later this year, the source said.

"I'm struggling to find factors that give anything a lift."