March 3, 2020 / 2:32 AM / a month ago

GRAINS-Soybeans hit near 6-week high on global stimulus expectations

SYDNEY, March 3 (Reuters) - U.S. soybean futures rose to a near six-week high on Tuesday, boosted by expectations for coordinated global stimulus steps to offset the broad economic impact of the coronavirus.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were up 0.1% at $9.01-1/2 a bushel by 0152 GMT after hitting a high of $9.05-1/2. Soybeans firmed 0.9% on Monday.

* The most active corn futures were up 0.5% at $3.76-1/2 a bushel, having gained 2% in the previous session.

* The most active wheat futures were down 0.2% at $5.22 a bushel, having closed down 0.3% on Monday.

* Market sentiment got a boost from expectations that central banks worldwide will cut interest rates to soften the blow of the coronavirus.

* The U.S. Department of Agriculture said 670,608 tonnes of U.S. soybeans were inspected for export in the week ended Feb. 27, within analysts’ estimates.

* U.S. wheat export inspections of 654,097 tonnes topped expectations, while corn inspections of 896,221 tonnes were within expectations.

* Argentina’s ministry of agriculture said last week it was suspending the registration of agricultural exports until further notice. Traders said the move likely foreshadowed a steep increase in grains export tariffs.

MARKET NEWS

* The euro held steady just under its highest in two months against the dollar on Tuesday on expectations that coronavirus-driven monetary easing in the United States can and will run deeper than any similar action in Europe.

* Oil prices rose over 4% on Monday, reversing an early fall to multi-year lows as hopes of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage to demand from the coronavirus outbreak.

* The Dow Jones Industrial Average surged over 5% on Monday while the S&P 500 and the Nasdaq each jumped more than 4% in a major rebound following last week’s steep sell-off sparked by fears about the coronavirus. (Reporting by Colin Packham; Editing by Maju Samuel)

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