GRAINS-Soybeans, corn rebound from 2-month lows; wheat firms

SINGAPORE, March 5 (Reuters) - Chicago soybeans and corn bounced back on Wednesday, recovering form their lowest levels since early January, although worries over escalating trade tensions between U.S. and its key trading partners capped the upside.

Wheat gained ground, rising for the first time in eight sessions.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 added 1.2% to $10.11 a bushel as of 0107 GMT, and corn Cv1 added 1.5% to $4.58-1/4 a bushel. Wheat Wv1 gained 0.8% at $5.41 a bushel.

All three products had dropped to their lowest since early January on Tuesday amid trade tensions between the world's top exporters and importers of agricultural goods.

U.S. President Donald Trump slapped 25% tariffs on imports from Mexico and Canada and doubled duties on Chinese goods to 20% on Tuesday.

Ottawa responded with 25% tariffs on more than $20 billion in U.S. imports, while Beijing said it would impose additional tariffs on agricultural and food products starting next week. Mexico's government is expected to respond on Sunday.

Trump's new tariffs threaten to hurt the $191 billion American agricultural export sector and raise costs for farmers struggling with low crop prices.

Some traders and analysts said short-term export flows to China may not be significantly altered, with an advancing Brazilian soybean harvest expected to absorb the bulk of Chinese demand in the coming months.

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

MARKET NEWS

Major stock indexes fell on Tuesday as the United States hit Canada, Mexico and China with steep tariffs, while the euro climbed to a three-month peak against the U.S. dollar as German political parties agreed to a 500 billion euro infrastructure fund. MKTS/GLOB

DATA/EVENTS (GMT)

0145 China Caixin Services PMI Feb

0850 France HCOB Serv, Comp, PMIs Feb

0855 Germany HCOB Serv, Comp Final PMIs Feb

0900 EU HCOB Serv, Comp Final PMIs Feb

0930 UK S&P GLOBAL PMI: COMPOSITE - OUTPUT Feb

0930 UK Reserve Assets Total

1445 US S&P Global Comp, Svcs PMIs Final Feb

1500 US Factory Orders MM, ISM N-Mfg PMI Feb