By Jesse Newman

CHICAGO--U.S. corn and soybean futures edged higher Friday, supported by a broad recovery in global financial markets and positioning ahead of the weekend.

Meanwhile, wheat fell.

Soybean prices led the gains, rising as stock markets stabilized world-wide after a volatile week and concerns over demand for the crop eased somewhat. Anxiety over an economic slowdown in China, the world's largest soybean buyer, pushed prices to a six-and-a-half year low earlier this week. On Thursday, however, strong export sales data helped lessen fears that the top U.S. buyer of the oilseeds would reduce purchases.

Rising crude-oil prices also buoyed the soybean market, as higher oil prices can encourage refineries to blend fuel additives into gasoline including biodiesel, in which soybeans are a key ingredient. Soybean oil futures prices, a major feedstock in biodiesel, rose 2.8% on Friday.

"Look at the crude oil chart," said Roy Huckabay, a vice president at Chicago commodity futures-trading firm and asset manager Linn Group, adding that "that's why we're seeing very active commercial buying of soybean oil," which is helping boost soybean prices.

Forecasts for warm, dry weather in the U.S. Midwest also bolstered prices for the crop, as plants in August rely on moisture to finish setting and filling pods.

Soybean futures for September delivery rose 2 3/4 cents, or 0.3%, to $8.89 a bushel at the Chicago Board of Trade.

Corn prices ticked upward, bolstered in part by higher soybean prices and trader positioning ahead of the weekend. Still, analysts said largely favorable weather and early harvest progress in the U.S. Delta region capped gains in the market, adding that corn prices likely would trade sideways for a few weeks, until more yield reports collect from the autumn harvest, giving traders and investors a firmer grasp on the size of the U.S. crop.

CBOT September corn gained 3/4 cent, or 0.2%, to $3.64 1/2 a bushel.

Wheat prices declined to a nearly three-month low, pressured by ample supplies of the grain and stiff competition for export demand. Egypt, the world's largest grain buyer, on Thursday purchased cheaper Russian grain supplies in an international tender, highlighting the lack of competitiveness of U.S. wheat.

"Wheat's got another issue that's buried underneath," said Mr. Huckabay, noting that much of the U.S. grain is of low-quality, and may be unfit for foreign export. "There may be a problem of how you get rid of it," he said, adding that much U.S. wheat could wind up as a substitute for corn in animal feed.

CBOT September wheat shed 5 cents, or 1%, to $4.79 1/4 a bushel, the lowest price since June 1.

Write to Jesse Newman at jesse.newman@wsj.com

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(END) Dow Jones Newswires

August 28, 2015 12:38 ET (16:38 GMT)