GRAINS-Soybean futures climb on steady oil prices

BEIJING, Feb 3 (Reuters) - Chicago soybean futures climbed on Tuesday, recouping some of the previous session's losses as steady crude oil lent support to prices, while wheat and corn were also trading higher.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.2% at $10.62-1/4 a bushel, as of 0215 GMT.

CBOT wheat Wv1 was up 0.1% at $5.28-1/4 a bushel and corn Cv1 rose 0.2% to $4.26-1/4 a bushel. Soybean oil BOcv1 gained 1.1% to $53.79 per lb.

Oil prices held steady after falling more than 4% in the last session, as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions, with a firmer dollar limiting the upside. O/R

Corn and soybeans, whose byproducts are used to produce biodiesel, often track strength in crude oil prices.

Ample global supply weighed on the market.

In South America, Brazil is in the early stages of harvesting what is forecast to be a record soybean crop. Traders expect China to turn mainly to Brazil for imports in the coming months after a recent wave of U.S. soybean purchases.

StoneX and agribusiness consultancy Celeres raised their forecasts for Brazil's 2025/26 soybean crop on Monday, citing higher yields than previously expected in the world's largest producer and exporter of the oilseed.

StoneX pegged Brazil's soybean output this season at 181.62 million metric tons, up from 177.61 million tons previously — a 7.6% year-on-year increase.

Celeres estimated a record 181.3 million tons, a 5% increase from its previous forecast of 177.2 million tons.

Commodity funds were net sellers of CBOT corn and wheat futures on Monday, traders said.

MARKETS

The dollar held gains on Tuesday as positive economic readings and shifting expectations for Federal Reserve policy outweighed concerns about another U.S. government shutdown. FRX/MKTS/GLOB

DATA/EVENTS (GMT)

0745 France CPI (EU Norm) Prelim YY, MM Jan

0745 France CPI Prelim YY, MM NSA Jan