GRAINS-Soybeans set for fifth week of gains on crude oil rally

SINGAPORE, March 6 (Reuters) - Chicago soybeans ticked up on Friday, heading for a fifth straight weekly gain, on a rally in crude oil prices amid the Iran conflict and expectations of stronger Chinese demand.

Wheat inched higher, but the market is set to end the week in negative territory on improved U.S. crop weather and plentiful world supplies.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 0.1% to $11.80-1/2 a bushel, as of 0122 GMT, on track for a weekly gain.

Wheat Wv1 added 0.2% to $5.84-1/2 a bushel, while corn Cv1 slid 0.1% to $4.53-1/4 a bushel.

Oil prices rallied this week on growing disruption to global oil supplies caused by the U.S.-Israeli war with Iran. However, the market gave up some of those gains early on Friday amid talk of the U.S. Treasury intervening to curb rising prices. O/R

Grain markets often track movements in crude oil, with the growing use of crops in making plant-based alternative fuels.

Still, ample world grain and oilseed supplies continue to limit the upside in prices.

Rains in some U.S. winter wheat belts, meanwhile, are boosting production prospects as crops emerge from dormancy.

Brazilian farmers are expected to reap 183.1 million metric tons of soybeans in the 2025/2026 season, agribusiness consultancy Agroconsult said on Thursday, raising its January estimate by 850,000 tons as it runs a nationwide crop tour.

Rainfall over the last week has improved the condition of Argentine soybean and corn fields, the Buenos Aires grains exchange said on Thursday, as the crops are currently undergoing a key period of high water demand during the Southern Hemisphere summer.

MARKET NEWS

Equity indexes fell on Wall Street and in Europe on Thursday while government bonds sold off and the U.S. dollar climbed, as oil prices surged on supply fears amid intensifying fighting on the sixth day of the U.S.-Israeli war with Iran. MKTS/GLOB

DATA/EVENTS (GMT)

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0700 Germany Manufacturing O/P Cur Price SA Jan

0700 Germany Consumer Goods SA Jan

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0745 France Reserve Assets Total Feb

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