GRAINS-Soybeans tick up after losses, higher crude supports

SINGAPORE, May 7 (Reuters) - Chicago soybeans and corn ticked higher on Thursday, supported by a rebound in crude oil prices, while wheat prices firmed amid concerns over dry weather in the U.S. reducing yields.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose 0.1% to $11.96-1/4 a bushel by 0047 GMT. Corn Cv1 added 0.1% to $4.69 a bushel and wheat Wv1 gained quarter of a cent to $6.17-1/2 a bushel.

Optimism over a possible end to the war in the Middle East drove losses in soybeans, corn and wheat futures on Wednesday.

However, U.S. crude futures rose about $1 in early trade on Thursday, rebounding from the previous day's losses, as investors assessed prospects for a Middle East peace deal. O/R

Iran said it was reviewing a U.S. peace proposal that sources said would formally end the war while leaving unresolved the key U.S. demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.

The war has driven fluctuations in oil prices, strongly influencing agricultural markets, as corn and soybean oils are widely used as inputs for production of alternative fuels.

Wheat has followed the crude market as well, although a drought in the U.S. wheat belts has been a key price driver.

The U.S. Department of Agriculture's weekly report said 31% of the nation's winter wheat crop was in good to excellent condition, up from 30% last week but still the lowest for this time of the year since 2023.

MARKET NEWS

Stocks surged to fresh records and oil prices dropped on Wednesday after a report that the United States and Iran are closing in on an agreement to end their war, while momentum in AI-driven trades accelerated. MKTS/GLOB

DATA/EVENTS (GMT)

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