(Updates with European trading, changes byline/dateline)
By Gus Trompiz and Enrico Dela Cruz
PARIS/MANILA, Jan 31 (Reuters) - Chicago soybean, wheat
and corn futures edged lower on Tuesday, consolidating below
multi-week highs as investors turned cautious before closely
watched economic data and central bank meetings this week.
Drought faced by corn and soy crops in Argentina and poor
conditions for U.S. winter wheat were helping underpin prices,
traders said.
The most-active soybean contract on the Chicago Board of
Trade was down 0.4% at $15.29-3/4 a bushel by 1224 GMT.
CBOT wheat was down 1% at $7.44-3/4 a bushel, while
corn slipped 0.3% to $6.81-1/2 a bushel.
On Monday, the soybean and corn contracts reached their
highest in nearly two weeks while wheat touched a near four-week
peak.
After worries about persisting drought in Argentina and a
cold spell in the United States lent support to prices in the
previous session, the focus has shifted towards macro-economic
news.
Investors broadly expect the U.S. Federal Reserve to raise
interest rates by 25 basis points on Wednesday, while both the
Bank of England and the European Central Bank are seen raising
rates on Thursday.
Renewed concern about an economic slowdown was cooling
recent enthusiasm over an anticipated easing in the Fed's pace
of rate hikes.
"Traders are taking profits on ‘Fed pivot’ trades ahead of
tomorrow’s Fed policy decision," Peak Trading Research said.
The dollar index rose, making U.S. commodities more
expensive to holders of other currencies.
Investors were also making end of month adjustments to
positions, analysts said.
In grain supply, market participants were assessing mostly
dry, hot weather forecast for Argentine crop belts this week,
which may temper the benefit of showers in the past two weeks.
Drought losses in Argentina may be offset, though, by an
expected record soy crop in Brazil, harvesting of which is under
way.
Crop conditions improved slightly in Kansas, the top U.S.
winter wheat producing state, during January but fell sharply in
Oklahoma, the No. 3 grower, the U.S. Department of
Agriculture(USDA) said on Monday.
Traders were also watching for clues as to Chinese demand
following last week's Lunar New Year holidays.
Wheat and corn tenders called by Egypt were also awaited for
an indication of ongoing competition from Black Sea zone. (Reporting by Gus Trompiz in Paris and Enrico Dela Cruz in
Manila; Editing by Kirsten Donovan)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.