GRAINS-Corn futures jump to 16-month high above $5 a bushel

Adds latest U.S. trading

By Tom Polansek

CHICAGO, Feb 18 (Reuters) - Chicago Board of Trade corn futures reached a 16-month high above $5 a bushel on Tuesday on robust U.S. export demand and expectations that inventories may tighten, analysts said.

Wheat futures touched their highest price since October, while soybean futures also advanced.

Traders have been watching to see whether the most-active corn contract Cv1 exceeds $5, a key price level, and said that farmers will likely increase sales of their crops to take advantage of the rally.

Strong demand for corn has not slowed following price gains this winter, said Arlan Suderman, chief commodities economist for brokerage StoneX.

The Department of Agriculture reported that 1.6 million metric tons of U.S. corn were inspected for export last week, beating analysts' estimates for 975,000 to 1.4 million metric tons.

Additional support for grain prices came from relief that U.S. President Donald Trump has not yet unleashed tariffs that are disrupting agricultural trade, analysts said.

Negotiations over trade tariffs could even lead some importers to buy more U.S. grain and soy, said Don Roose, president of brokerage U.S. Commodities.

"The tariff push is going to be more like, 'Buy America and buy more grain," he said.

Most-active CBOT corn futures Cv1 were up 7 cents at $5.03-1/4 a bushel by 12 p.m. CST (1800 GMT).

CBOT wheat Wv1 was up 5 cents at $6.05 a bushel, while soybeans Sv1 rose 4 cents to $10.40 a bushel.

Corn supplies are expected to tighten in the coming months but soybeans are projected to be plentiful.

U.S. soy processors crushed their second-largest volume of soybeans ever in January, down slightly from a record high the previous month, according to National Oilseed Processors Association (NOPA) data.

In Argentina, a major soy and corn supplier, weekend rains helped to prevent further losses to the country's drought-hit crops, the Rosario grains exchange said.

Traders are also watching weather conditions for global wheat production, as cold temperatures in Russia and the U.S. could damage dormant crops, analysts said.