GRAINS-Soybeans rise on strong demand from US crushers

BEIJING, Jan 20 (Reuters) - Soybean futures on the Chicago board of trade extended gains for a fourth consecutive session on Tuesday, supported by healthy demand for soy to make biofuel, but estimates of a record harvest in Brazil capped gains.

Wheat futures also firmed, helped by signs of healthy export demand in recent days, while corn fell slightly under pressure from abundant supply.

FUNDAMENTALS

The most-active soybean contract on the CBOT Sv1 rose 0.2% to $10.59-1/2 a bushel by 0258 GMT.

CBOT wheat Wv1 added 0.1% to $5.18-1/4 a bushel and corn Cv1 fell 0.1% to $4.24-1/4 a bushel.

Soybean prices were anchored by expectations of a record harvest in Brazil, the world's largest producer and exporter.

Brazilian production is set to rise 5% year-on-year to 183.79 million metric tons, consultancy Safras & Mercado said on Monday.

Brazil will crush 60 million tons of soybeans in 2026, up from year-ago 58.5 million tons, and export 105 million tons, they estimated.

However, strong demand from U.S. soy processors supported CBOT prices.

The U.S. soybean crush jumped in December to the second-highest monthly level on record, the National Oilseed Processors Association said on Thursday.

U.S. processing capacity has increased as companies expand to meet rising vegetable oil demand from biofuel makers. Plants also ramped up processing rates after a bumper U.S. harvest last fall.

Commodity funds were net buyers of CBOT corn and wheat futures on Friday, traders said. CBOT/FUNDS

MARKET NEWS

The dollar retreated to its lowest in a week on Tuesday after threats from the White House towards the European Union over the future of Greenland triggered a broad selloff across U.S. stocks and government bonds. MKTS/GLOB

DATA/EVENTS

0700 UK ILO Unemployment Rate Nov

0700 UK HMRC Payrolls Change Dec

1000 Germany ZEW Economic Sentiment Jan

1000 Germany ZEW Current Conditions Jan