CHICAGO, June 6 (Reuters) -

U.S. corn futures rose on Tuesday as investors unwound bearish bets ahead of a key government supply and demand report at the end of the week, traders said.

"It is all money flow," said Karl Setzer, brokerage research lead with Mid-Co Commodities. "When you get down to it, funds have built a huge short position in corn ... and we are starting to see quite a little bit of short-covering ahead of the U.S. Agriculture Department's World Agricultural Supply and Demand Estimates report."

Soybeans were trading close to unchanged after rising to their highest in nearly three weeks, with traders noting position squaring before Friday's report. Soybean futures veered between gains and losses during the session.

Wheat futures were weaker, led lower by K.C. hard red winter wheat and MGEX spring wheat contracts as export demand for U.S. supplies remained slim despite concerns about escalations in the Ukraine-Russia war disrupting shipments from those two key global suppliers.

At 10:54 a.m. CDT (1554 GMT), the benchmark Chicago Board of Trade July soft red winter wheat contract was down 1/4 cent at $6.23-3/4 a bushel.

The

lowest offer

presented at an Egyptian state purchasing tender for wheat on Tuesday was $229 per tonne for 55,000 tonnes of Russian wheat on a free-on-board basis, traders said. No U.S. wheat was offered in the tender.

"Russian prices are still moving south. They have got a huge carryover from last year and everything looks like they will have a more than ample new crop," said Tom Fritz, a partner with EFG Group in Chicago. "World wheat prices just don't let us rally.

CBOT July corn futures were up 6-1/4 cents at $6.03-3/4 a bushel and CBOT July soybeans were 1-1/4 cents higher at $13.51-1/4 a bushel after peaking at $13.64, their highest since May 17.

Private exporters reported the sale of

165,000 tonnes

of soybeans for shipment to Spain in the 2022/23 marketing year, the U.S. Agriculture Department said on Tuesday morning. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, David Evans, Chizu Nomiyama and Richard Chang)