GRAINS-Soybeans rebound, South American supplies limit upside

Reuters
03-12
GRAINS-Soybeans rebound, South American supplies limit upside

SINGAPORE, March 12 (Reuters) - Chicago soybean futures rose on Wednesday for the first time in four sessions, with bargain-buying supporting prices, although gains were curbed by abundant South American supplies and uncertainty over impact of trade war on U.S. sales.

Wheat and corn prices rose, regaining some of the ground lost on Tuesday.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.2% at $10.12-3/4 a bushel, as of 0011 GMT. Wheat Wv1 added 0.4% to $5.59 a bushel and corn Cv1 firmed 0.1% to $4.70-1/2 a bushel.

* Soybeans are coming under pressure from hefty South American supplies hitting the global market.

* Brazil's soybean exports are expected to reach 15.45 million metric tons in March, up more than 4% compared with last week's forecast, as the country continues to harvest its massive new crop, according to data from the grain exporters lobby Anec.

* Corn prices came under pressure on Tuesday after the U.S. government left domestic corn inventories unchanged in a monthly supply-and-demand report - despite strong export sales and trade tensions with top buyer Mexico.

* The U.S. Department of Agriculture pegged 2024-25 U.S. corn stocks at 1.54 billion bushels and exports at 2.45 billion bushels, both unchanged from February. Analysts had expected stocks to decline to 1.516 billion bushels due to robust demand, according to a Reuters poll.

* Traders and farmers are keeping a close eye on exports, with U.S. tariff disputes with major buyers Mexico, Canada and China threatening sales of U.S. agricultural goods.

* Commodity funds were net sellers of Chicago Board of Trade corn, soybean, wheat and soymeal futures contracts on Tuesday, and net buyers of soyoil futures, traders said. COMFUND/CBT

MARKET NEWS

* Ukraine's acceptance of a U.S. proposal for a ceasefire with Russia briefly pushed the euro to a five-month high while equities fell in Tuesday's choppy session as investors worried about a lack of clarity on tariffs. MKTS/GLOB

DATA/EVENTS $(GMT.NZ)$

1230 US Core CPI MM, SA; Core CPI YY, NSA Feb

1230 US CPI MM, SA; CPI YY, NSA Feb

1230 US CPI Wage Earner Feb

(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)

((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))

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