Soybeans and corn steadies while wheat weakness remains

PARIS/SINGAPORE: Chicago soybean futures steadied on Friday after the previous day's slide triggered by some rain relief in Argentina and a broad sell-off in oilseed and energy markets.

Corn also edged higher after falling sharply on Thursday when tumbling oil prices and a firm dollar encouraged the market to give back some of its gains this week after large export sales to China.

Wheat ticked down as it remained pressured by generally favourable conditions for northern hemisphere crops.

The most active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4% at $13.97-1/24 a bushel by 1240 GMT.

It earlier slipped to a two-week low at $13.90 but found chart support around that level.

Recent rain in Argentina that was expected to have averted further yield losses for soybean crops has contributed to selling in oilseed markets this week.

However, Argentina's main farming region will receive little rain for the rest of this month, the Buenos Aires Grains Exchange said on Thursday.

Argentina has seen "beneficial but heterogeneous rains", consultancy Agritel said.

Workers at the Argentine grains port hub of Rosario, meanwhile, will start a 24-hour strike on Friday morning to protest against layoffs at one of the companies in the sector, a union official said on Thursday.

CBOT corn was up 0.3% at $5.48 a bushel while wheat was down 0.3% at $6.28-1/2.

Crude oil broadly stabilised on Friday after tumbling by about 7% on Thursday on renewed concerns about a demand hit from the COVID-19 pandemic. Crude oil influences crop markets because of the use of grain in biofuel.

"A bearish tone descended across commodity markets as investors continue to readjust their expectations of demand," ANZ bank said in a note.

Traders were also monitoring news from a meeting between high-level US and Chinese officials on Thursday.