GRAINS-Soybeans inch higher on Argentine dryness, set for second monthly gain

SINGAPORE, Jan 31 (Reuters) - Chicago soybean climbed on Friday, with the market poised for a second monthly gain, as dry weather forecast threatens to reduce yields in key supplier Argentina.

Corn and soybean dipped, but both markets are set to end the first month of 2025 on a positive note.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.1% at $10.44-1/2 a bushel, as of 0120 GMT. Corn Cv1 slid 0.9% to $4.85-3/4 a bushel and wheat Wv1 lost 0.5% to $5.63-1/2 a bushel.

Soybeans have gained around 3.5% so far in January, on track for the second consecutive monthly jump, corn has advanced almost 6%, gaining for a third straight month and wheat is up more than 2% this month.

Disappointing rainfall in Argentina and an outlook for continued dryness in weeks ahead are likely to support soybeans and corn futures.

Agricultural markets are waiting to see whether U.S. President Donald Trump will follow through on threats to impose tariffs against Mexico and Canada, which would likely spark retaliation from two of the largest U.S. crop importers.

Weekly U.S. soybean export sales came in below analysts' expectations.

Wheat prices have been bolstered by lowered forecasts for Russian exports and concerns that frigid weather may have harmed the U.S. winter wheat crop.

Consultancy Sovecon said on Thursday that it revised down its Russian wheat export forecast for 2024/2025 to 42.8 million metric tons from 43.7 million.

In India, there are forecasts of above-average temperatures in February, with key wheat- and rapeseed-growing states likely to see maximum temperatures up to 5 degrees Celsius above average on some days in a risk to crops.

Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Thursday, traders said. Funds were net buyers of soyoil and wheat futures contracts. COMFUND/CBT

MARKET NEWS

Wall Street shares advanced on Thursday as investors cheered updates from Meta and Tesla, while gold hit a record and the U.S. dollar advanced on potential tariffs. MKTS/GLOB

DATA/EVENTS (GMT)

0700 UK Nationwide house price MM, YY Jan

0745 France CPI (EU Norm) Prelim YY, MM Jan

0745 France CPI Prelim MM, YY NSA Jan

0745 France Producer Prices YY Dec

0855 Germany Unemployment Chg, Rate SA Jan

1300 Germany CPI Prelim YY, HICP Prelim YY Jan

1330 US Consumption, Adjusted MM Dec

1330 US Core PCE Price Index MM, YY Dec

1330 US PCE Price Index MM, YY Dec