* Chicago corn futures rally ahead of U.S. acreage report
* Soybeans, wheat rise more than 1% after recent declines
* Corn, wheat, soybeans dropped in first half of 2023
SINGAPORE, June 30 (Reuters) - Chicago corn bounced back on Friday, recovering from this week's deep losses on concerns over dry weather in the U.S. Midwest and positioning ahead of a key acreage report due later in the day.
Soybeans and wheat rose more than 1%.
With extremely poor crop conditions and the U.S. Department of Agriculture (USDA) indicating that 70% of the U.S. crop production is in drought areas, the crop remains vulnerable to yield losses, commodities research firm Hightower said in a note.
The most-active corn contract on the Chicago Board of Trade (CBOT) added 1.4% to $5.35-3/4 a bushel, as of 0438 GMT, soybeans gained 1.2% to $12.80-1/4 a bushel and wheat rose 1.6% to $6.78-1/4 a bushel.
Corn has given up more than a fifth of its value in the first half of this year, soybeans are down 16% since the first trading day of 2023 and wheat has dropped 14% in January-June period.
The most intense drought to hit the U.S. Midwest farm belt since 2012 deepened over the past week, sapping soil moisture and threatening crop yield potential in the heaviest corn and soybean production areas of the United States.
Weekly drought Monitor data showed 65% of the region in moderate drought or worse as of June 27, up from 58% a week earlier and the broadest area since 2012.
However, a series of rain storms forecast over the next two weeks in the southern and central Midwest could help stabilize or improve crop conditions that have been eroding for weeks and recharge soil moisture just ahead of the corn crop's critical pollination period in late July.
Traders await the USDA's quarterly stocks report on Friday, in which analysts expect the government to report smaller June 1 supplies of corn, soybeans and wheat compared to a year ago. The USDA will also release updated U.S. acreage estimates.
Deliveries against CBOT July corn and soybean futures should be light on Friday, the first notice day, traders and analysts said on Thursday, citing relatively firm cash markets.
The International Grains Council on Thursday trimmed its forecast for 2023/24 global corn production, reflecting a diminished outlook for the crop in the U.S.
The inter-governmental body, in a monthly update, cut its global corn production forecast by six million metric tons to 1.211 billion metric tons.
Argentina's wheat harvest for the 2023/2024 season is estimated at 18 million-19 million metric tons, according to a government forecast issued on Thursday, up by about half compared to the previous drought-stricken harvest.
Commodity funds were net sellers of CBOT corn, wheat and soyoil futures contracts on Thursday, and net buyers of soybean and soymeal futures, traders said. (Reporting by Naveen Thukral; Editing by Rashmi Aich)
