GRAINS-Soybeans, corn, wheat rise for second session on tariff relief hopes

SINGAPORE, March 6 (Reuters) - Chicago soybean, corn and wheat futures gained more ground on Thursday, with agricultural markets supported by indications that U.S. tariffs against Canada and Mexico may be reduced.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 added 0.5% to $10.16-1/2 a bushel as of 0106 GMT, and corn Cv1 gained 0.6% at $4.58-1/4 a bushel. Wheat Wv1 rose 0.7% to $5.52 a bushel.

The White House on Wednesday said U.S. President Donald Trump will exempt automakers from his tariffs on Canada and Mexico for one month as long as they comply with the terms of an existing free trade agreement, and said he is open to hearing about other products that should be exempted.

Trump slapped 25% tariffs on imports from Mexico and Canada on Tuesday and doubled duties on Chinese goods to 20%, drawing immediate retaliatory steps from Canada and China and a pledge from Mexico to respond.

U.S. grain exports to China may not be significantly altered in the near term, given a lull in Chinese corn and wheat imports and a seasonal shift towards buying Brazil's incoming soybean crop, analysts and traders say.

Brazil is in the midst of harvesting an expected record soybean crop, a prospect that had already weighed on U.S. prices prior to Trump's tariff moves this year.

China's new tariffs on U.S. farm goods are poised to reshape global trade flows, prompting the world's top agricultural importer to source more meat, dairy and grains from countries in South America, Europe and the Pacific.

Shipments to China from key soybean supplier Brazil, top wheat exporter Australia and major pork supplier Europe, could surge as a trade war between the world's largest economies heats up, industry officials and analysts said.

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

MARKET NEWS

Stock indexes rose sharply on Wednesday after the White House said President Donald Trump will exempt automakers from his 25% tariffs on Canada and Mexico for one month, while the U.S. dollar fell against most currencies and the euro hit its highest in four months. MKTS/GLOB

DATA/EVENTS (GMT)

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

1315 EU ECB Refinancing Rate, ECB Deposit Rate Mar

1330 US International Trade $ Jan

1330 US Initial Jobless Clm Weekly