SINGAPORE, May 7 (Reuters) - Chicago soybeans and corn ticked higher on Thursday, supported by a rebound in crude oil prices, while wheat prices firmed amid concerns over dry weather in the U.S. reducing yields.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 0.1% to $11.96-1/4 a bushel by 0047 GMT. Corn Cv1 added 0.1% to $4.69 a bushel and wheat Wv1 gained quarter of a cent to $6.17-1/2 a bushel.

* Optimism over a possible end to the war in the Middle East drove losses in soybeans, corn and wheat futures on Wednesday.

* However, U.S. crude futures rose about $1 in early trade on Thursday, rebounding from the previous day's losses, as investors assessed prospects for a Middle East peace deal. O/R

* Iran said it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

* The war has driven fluctuations in oil prices, strongly influencing agricultural markets, as corn and soybean oils are widely used as inputs for production of alternative fuels.

* Wheat has followed the crude market as well, although a drought in the U.S. wheat belts has been a key price driver.

* The U.S. Department of Agriculture's weekly report said 31% of the nation's winter wheat crop was in good to excellent condition, up from 30% last week but still the lowest for this time of the year since 2023.

MARKET NEWS

* Stocks surged to fresh records and oil prices dropped on Wednesday after a report that the United States and Iran are closing in on an agreement to end their war, while momentum in AI-driven trades accelerated. MKTS/GLOB

DATA/EVENTS (GMT)

0600 Germany Industrial Orders MM Mar

0600 Germany Manufacturing O/P Cur Price SA Mar

0600 Germany Consumer Goods SA Mar

0830 UK S&P Global PMI: MSC Composite - Output Apr

1230 US Initial Jobless Clm May 2, w/e