U.S. and European wheat futures rose by over 2% on Friday to extend a rebound from four-month lows this week, supported by easing fears of a global recession and signs of renewed importer demand.

Corn also rose to move further away from a seven-month low touched this week, although soybeans turned sightly lower as a bounce from a six-month low faltered. The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 2.4% at $8.56-1/4 a bushel by 1121 GMT, after climbing to its highest since July 1 at $8.61-1/4 earlier in the session. In Europe, September wheat on Euronext also reached a one-week high as it added to Thursday's bounce.

Traders say wheat markets had become technically oversold, while the abating of investor fears of an economic recession and reports of importer activity shifted the focus back to supportive supply and demand fundamentals. Economic sentiment has improved, partly due to news of Chinese fiscal stimulus, although there was caution in financial markets following the killing of Japan's former prime minister Shinzo Abe and ahead of monthly U.S. jobs data.

"Receding macro worries, and what most would regard as too low prices, set the market up for these gains," said Robin Gore, director of agricultural strategy at the Commonwealth Bank of Australia, referring to the move in wheat prices. "We also note that estimates for Argentina's wheat planting are being cut because of continued dryness in some regions." Egypt's state grains buyer ramped up direct purchases of imported wheat this week, including a rare purchase of German wheat, sources said. There was also market chatter about China showing renewed interest in foreign wheat for possible import purchases, traders said.

Grain markets will get an update on international demand from weekly U.S. export sales data at later on Friday. CBOT corn rose 1.1% to $6.03 a bushel and soybeans gained 1.2% at $13.81-3/4 a bushel. Traders were continuing to assess weather for U.S. Midwest corn and soybean crops ahead of monthly U.S. Department of Agriculture forecasts next Tuesday.

Weather charts pointed to rain for parts of the Midwest in the week ahead but some zones were set to remain dry. Prices at 1121 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 856.25 19.75 2.36 770.75 11.09 CBOT corn 603.00 6.75 1.13 593.25 1.64 CBOT soy 1364.25 -1.25 -0.09 1339.25 1.87 Paris wheat 348.00 9.25 2.73 276.75 25.75 Paris maize 309.75 11.50 3.86 226.00 37.06 Paris rape 688.75 -1.25 -0.18 754.00 -8.65 WTI crude oil 102.59 -0.14 -0.14 75.21 36.40 Euro 1.01 0.00 -0.21 1.1368 -10.82 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Amy Caren Daniel, Sherry Jacob-Phillips and David Evans)