Recasts with price strength in European trade, new comment, changes dateline

By Michael Hogan

HAMBURG, May 8 (Reuters) - Chicago wheat and soybeans futures firmed on Friday as crude oil resumed its rise on renewed fighting between the U.S. and Iran, while continued dryness in key U.S. wheat belts lent support.

The Chicago Board of Trade's most-active wheat contract Wv1 was up 0.1% to $6.13-1/4 a bushel at 1132 GMT. Soybeans rose 0.1% to $11.93-3/4 a bushel, while corn Cv1 fell 0.2% to $4.66-1/2 a bushel.

Wheat has fallen about 4% this week, corn about 2.5% and soybeans around 1%, pressured by earlier weakness in crude oil on hopes of an Iran peace deal and forecasts of U.S. rain.

Oil prices rose on Friday after renewed fighting between the U.S. and Iran. O/R

"Wheat, corn and soybeans are mixed today as tensions in the Middle East Gulf are assessed with markets seeking a pause after Thursday's falls," said Matt Ammermann, commodity risk manager at StoneX. "Tensions are building as the U.S. and Iran already exchanged fire in the Hormuz Strait, even though they both claim the ceasefire still remains."

Dealers are monitoring weather in drought-hit U.S. wheat belts, where this week's rainfall missed some critically dry areas and may have arrived too late or in insufficient amounts to prevent crop damage. Some rain is forecast next week, but volumes are expected to be moderate.

"For wheat, the focus remains on poor U.S. crop conditions and the ever present Western Plains drought threatening hard red winter wheat, but latest forecasts show some hopes of rain next week," Ammermann said.

"Soybean markets are nervous ahead of the upcoming meeting between U.S. President Trump and China's leader in China next week which could open up more U.S. soybeans to China following the trade war."

For corn, the focus is on expected progress of U.S. planting and temperatures in U.S. corn regions, he said.