GRAINS-Chicago soybeans fall as weaker crude oil pushes down prices

BEIJING, March 20 (Reuters) - Chicago soybean futures fell on Friday, tracking losses in soyoil prices driven by lower crude oil, while investors weighed the market impact of the military conflict in the Middle East.

Wheat and corn futures edged lower.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.1% at $11.67-1/2 a bushel, as of 0250 GMT. The oilseed gained 1% for the week. Soyoil BOcv1 fell 0.3% to 65.20 cents per pound and was down 3.3% for this week.

CBOT wheat Wv1 lost 0.4% to $6.05-1/2 a bushel, down 1.4% for the week. Corn Cv1 fell 0.5% to $4.67-1/2 a bushel, and stayed unchanged this week.

Oil prices fell on Friday as leading European nations and Japan offered to join efforts to secure safe passage for ships through the Strait of Hormuz and the U.S. outlined moves to boost oil supply. OR

Soybean and corn track oil prices because both crops are widely used for biofuel feedstock, while grains as a whole have attracted investor demand amid the conflict.

China, the world's largest soybean importer, is projected to buy 108 million metric tons of U.S. soybeans in 2026, up 2 million metric tons from last year, the U.S. Department of Agriculture said on Friday.

The estimate reflected moderate growth in demand for soybean meal by China's feed industry, the USDA said.

The reduction of Chinese tariffs on Canadian canola seed and meal is expected to lead to a resumption of imports, which could reduce demand for competing oilseed and meal imports, the agency said.

The International Grains Council on Thursday forecast that world grains production would fall in 2026/27, driven partly by an expected decline in output in the U.S., while also highlighting risks from the conflict in the Middle East.

MARKETS

Investors assessing the potential for deeper economic pain from the war in Iran are selling assets across the globe, from government bonds to stocks and gold, reigniting fears that markets may become vulnerable to a bigger dislocation. MKTS/GLOB