GRAINS-Corn futures turn higher for fifth session, soybeans steady

By P.J. Huffstutter

CHICAGO, March 11 (Reuters) - Chicago Board of Trade corn futures were up for a fifth straight session on Tuesday, as the federal government left domestic corn inventories unchanged in a monthly supply-and-demand report - despite strong export sales and trade tensions with top buyer Mexico.

Soybean futures steadied after a two-day fall, and wheat remained down after the U.S. Department of Agriculture reported wheat inventories were above trade expectations, market analysts said.

"The biggest shock on the U.S. side was wheat stocks going up, which is bearish, so prices reacted," said Terry Reilly, a strategist at Marex.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.49% at $5.99-3/4 a bushel at 1706 GMT, while soybeans Sv1 were up 0.17% at $10.15-3/4 a bushel.

CBOT corn Cv1 was up 0.58% at $4.74-3/4 a bushel, and reached the highest price since February 28.

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. They said USDA likely held off on changes as it waits to see whether the U.S. implements fresh tariffs and how trading partners respond.

Fears that U.S. tariffs will hurt economic growth have unsettled financial markets, while grain investors are wary that China may shun U.S. soybeans altogether in favor of a bumper Brazilian crop. MKTS/GLOB

But some analysts were baffled why USDA kept the U.S. corn export forecast unchanged on Tuesday.

"We are currently running at 405 million bushels (of corn exported) above last year's pace, versus the USDA's expectations of a 158 million bushel increase," said Angie Setzer, partner at Consus Ag, noting the agency's adjustment for wheat, which has a smaller gap.

"I get the whole conversation about trade and tariffs and the unknown," she added. "But if all you can do is predict the futures based on normal market trends, as they have told me they do, I'm not sure how they can rationalize not making an adjustment at this point."