GRAINS-Soybeans higher on bargain buying despite crude oil slide

By Heather Schlitz

CHICAGO, March 25 (Reuters) - Chicago soybeans ticked higher on Wednesday, buoyed by bargain buying, while corn and wheat strengthened on bullish fundamentals despite weakness in crude oil futures, analysts said.

Oil prices dropped more than 5% after U.S. proposals to end the conflict in the Middle East.

Reports of a 15-point U.S. plan after President Donald Trump's comments this week about talks with Tehran have fuelled investor hopes of de-escalation in the U.S.-Israeli war 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 settled 16-3/4 cents higher at $11.71-3/4 per bushel.

The most active corn contract Cv1 settled 4-3/4 cents higher at $4.67-1/4 per bushel while CBOT wheat Wv1 closed 7-3/4 cents up at $5.97-3/4 a bushel.

Soybeans have slumped from highs hit at the start of the conflict, 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 from revised U.S. biofuel blending targets due by the end of the month, which could expand demand for feedstocks such as soyoil.

Grain markets are also assessing potential repercussions for crop production from war-related tensions in fertiliser markets.

Rising fertiliser and fuel prices could influence farmers' planting decisions, increasing interest in U.S. Department of Agriculture acreage estimates next week.

Many analysts expect farmers to 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.