GRAINS-Soybeans higher on bargain buying despite crude oil slide
By Heather Schlitz
CHICAGO, March 25 (Reuters) - Chicago soybeans ticked higher on bargain buying on Wednesday, with corn and wheat also gaining strength on bullish fundamentals despite weakness in crude oil futures, analysts said.
Oil prices dropped more than 5% following U.S. proposals to end the Middle East war.
Reports of a 15-point U.S. plan following President Donald Trump's comments this week about talks with Tehran have fuelled investor hopes of de-escalation in the U.S.-Israeli conflict with Iran. O/R
Grain and oilseed prices have often tracked fluctuations in crude oil during the conflict, reflecting the use of corn and soyoil in biofuels and investor interest in the crops as an inflation hedge.
The most-active Chicago Board of Trade soybean contract Sv1 was 9 cents higher at $11.64 per bushel as of 12:30 p.m. CT (1930 GMT).
The most-active corn contract Cv1 was up 3-3/4 cents at $4.66 a bushel, while CBOT wheat Wv1 was 4-3/4 cents higher at $5.94-1/2 a bushel.
Soybeans have taken a nosedive from highs hit at the outset of war, making them an attractive prospect for bargain buying.
"Because we've come this much off the highs, it's an opportunity to step back in after them being so discounted," said Joe Davis, director at Futures International.
Grain traders are awaiting direction too from revised U.S. biofuel blending targets due by the end of the month, which could expand demand for feedstocks like soyoil.
Grain markets are also assessing potential repercussions for crop production from war-related tensions in fertiliser markets.
Rising fertiliser and fuel prices may influence farmers' planting decisions, increasing interest in U.S. Department of Agriculture acreage estimates next week.
Many analysts expect that farmers will trim plantings of input-intensive corn, lending some support to the grain.
The wheat market, meanwhile, is weighing the risk of drought damage to U.S. crops against a backdrop of ample global supply, as illustrated by rising Russian exports this month.
