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USDA world crop report, Canada stocks estimates eyed
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South American weather in focus for soy, corn
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Market also watching for Fed chief's comments
(Updates with European trading, changes byline/dateline)
By Gus Trompiz and Matthew Chye
PARIS/SINGAPORE, Feb 7 (Reuters) - Chicago soybean
futures inched higher on Tuesday, drawing support from stronger
vegetable oil prices as participants awaited U.S. government
crop forecasts for a latest gauge of South American harvest
prospects.
Corn and wheat edged lower as attention turned to Wednesday's U.S. Department of Agriculture (USDA) monthly world crop report. Investors were also waiting for a speech by U.S. Federal Reserve Chair Jerome Powell later on Tuesday for further clues on interest rate policy. The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.5% at $15.29-1/2 a bushel by 1222 GMT. Soyoil futures were higher, tracking strength in palm oil after Indonesia said it would suspend some export permits, while soymeal eased as traders assessed rain forecasts for drought-affected Argentina. The market is also factoring in an expected record crop in Brazil, though early harvesting has been slowed by heavy rain. "The next 36 hours are a countdown to Wednesday's WASDE fireworks," Peak Trading Research said in a note, referring to the USDA's February World Agricultural Supply and Demand Estimates (WASDE). "Traders will be watching South American crop estimates and China demand numbers." Grain markets will also get a supply update on Tuesday from official Canadian stocks estimates.
CBOT corn ticked down 0.3% to $6.77-1/4 a bushel while wheat eased 0.3% to $7.48 a bushel. The corn market is also seeking a clearer picture on South American harvest potential, as well as the next planting season in the United States, where farmers are planning to boost corn acreage. Forecast rains in some U.S. growing zones were capping wheat prices, though part of the Plains hard red winter belt was seen staying dry. The wheat market was also awaiting results from two international tenders issued by Algeria as a further indication of competition from Black Sea supplies. (Reporting by Gus Trompiz in Paris and Matthew Chye in Singapore; Editing by Subhranshu Sahu and Tomasz Janowski)
Messaging: gus.trompiz.thomsonreuters.com@reuters.net))