GRAINS-Chicago grains subdued as war uncertainty weighs
By Heather Schlitz
CHICAGO, March 26 (Reuters) - Chicago corn and wheat futures seesawed on Thursday while soybeans ticked higher as traders monitored developments in the Middle East amid mixed signals from the U.S. and Iran, and awaited fundamental cues from U.S. planting and biofuel announcements.
The most-active corn contract Cv1 on the Chicago Board of Trade was last down 1-3/4 cents to $4.65-1/2 per bushel as of 11:00 a.m. CT (1800 GMT). CBOT wheat Wv1 rose 3-1/4 cents to $6.01 per bushel, while CBOT soybeans Sv1 added 4-1/4 cents to $11.76 a bushel.
Prices had risen in the previous session, supported by technical buying and uncertainty over negotiations to end the U.S.-Israeli war with Iran.
"It's the president. What he says comes out of left field and there's no way to prepare for it when it happens. That's driving the market," said Ed Dugan, broker at StoneX.
Doubts over a swift end to the conflict kept crude oil prices firm on Thursday, helping push soyoil BOv1, widely used for biofuel, higher.
However, a rise in the dollar =USD, as well as caution ahead of widely expected U.S. agricultural news, kept grains and oilseeds in check.
Traders are watching for a possible announcement of revised U.S. biofuel targets at a White House event on Friday, which has supported the soy complex.
Attention is also turning towards U.S. Department of Agriculture acreage estimates next Tuesday, with rising fertiliser and fuel prices due to the Middle East war heightening interest in farmers' planting decisions.
The soybean market is also assessing prospects for further Chinese demand, after Wednesday's news that U.S. President Donald Trump will now visit Beijing on May 14-15 in a rescheduled trip.
The news helped push soybeans higher on Wednesday, reviving speculation about fresh Chinese purchases as part of trade negotiations.
However, analysts remain cautious given China's shift towards Brazil in recent weeks as the South American country wraps up an expected record harvest.
The wheat market continued to monitor drought in the U.S. Plains, with forecasts now showing limited chances of rain before early April and hot weather expected this week, which is likely to exacerbate dryness.
