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

By Naveen Thukral

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.

"This is mainly an oil and war-driven rally in prices," said a trader in Singapore. "We have big supplies coming from South America, so there is no supply shortage."

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 0.4% to $11.84 a bushel, as of 0251 GMT, on track for a weekly gain.

Wheat Wv1 added 0.4% to $5.86-1/4 a bushel, while corn Cv1 gained 0.1% at $4.54 a bushel.

Oil prices slid by around 1% on Friday, but the market has climbed by close to 20% since the Iran war began. 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.