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Ukraine Black Sea grain deal extended for at least 60 days
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Market eyes Fed rate decision on Wednesday
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Big Brazilian crop, Argentina rains push down soybeans
(Updates prices, adds quotes, changes byline, changes dateline
from previous HAMBURG )
By Cassandra Garrison
MEXICO CITY, March 20 (Reuters) - Chicago Board of Trade
grain futures fell on Monday after a deal to export grains by
sea from Ukraine was extended, allowing the flow of crops to
global buyers, analysts said.
Markets also were focusing on the Federal Reserve's
interest rate decision on Wednesday. Traders and economists
remain split on whether the U.S. central bank
will raise
its benchmark overnight interest rate on Wednesday, as
markets remain on edge in the midst of global banking strains.
"Traders, especially small traders, have run to the
sidelines in anticipation of the Fed and its decision and
they'll watch to see how outside markets, the bond market, crude
oil and the dollar react," said Mike Zuzolo, president of Global
Commodities Analytics and Consulting.
The deal allowing a safe Black Sea shipping corridor to export Ukrainian grain was renewed on Saturday for at least 60 days, despite hopes for a 120-day extension, after Russia warned any further extension beyond mid-May would depend on the removal of some Western sanctions. Russian President Vladimir Putin said that Russia would
provide grain to African countries for free if the grain deal is not extended in May.
Chicago Board of Trade most-active wheat was down 2.01% to $6.96 a bushel by 10:30 a.m. CDT (1530 GMT), while corn was down 0.71% to $6.29-3/4 a bushel. Soybeans were up 0.3% at $14.81 a bushel after dropping earlier to a three-month low. Soybean traders were focused on ample supplies from a record crop in Brazil coupled with rains expected to pick up in Argentina, Zuzolo added.
Brazil's record soybean crop this season will allow the nation to boost exports to China while also increasing domestic soybean processing. (Reporting by Cassandra Garrison, Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Susan Fenton and Paul Simao)
Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))