Grains steady as market looks to USDA data, China imports

Soybean futures fell from a six-month high in the previous session as traders took profits ahead of the data, although the market gleaned some support from expectations that China will raise second-quarter soybean imports.

Wheat futures were also flat in early trade after talk of rain in the dry crop areas of western Europe had weighed on prices in the previous session.

FUNDAMENTALS

USDA confirmed sales of 132,277 tons of new-crop U.S. soybeans to China.

Traders said China may have since bought another new-crop U.S. cargo, as well as several routine purchases from Brazil for shipment this summer.

China seen raising soybean imports in the April-June 2012 quarter, including purchases of old-crop U.S. soybeans, as it seeks to meet strong domestic demand and build up stocks, oilseeds analysts Oil World said.

Egypt’s GASC set a tender on Tuesday to buy wheat for May 11-20 shipment.

The Ethiopian government has extended the deadline in an international tender to purchase 35,000 tonnes of milling wheat from March 5 to March 15, European traders said. Results awaited.

The outlook for the U.S. crop also brightened a bit, with the USDA rating 59 percent of wheat in Kansas, the country’s top producer, as good or excellent, up from 54 percent a week earlier.

MARKET NEWS

The euro fell to a session low against the dollar on Tuesday after Federal Reserve Chairman Ben Bernanke said the U.S. central bank does not take any options off the table and needs to be prepared to respond however the economy evolves.<USD/>

Brent crude prices dipped on Tuesday in tug-of-war trading as market players factored concerns over disrupted supply against the likelihood of a release of U.S. strategic oil reserves to cap rising fuel costs <O/R>

U.S. stocks retreated from near four-year peaks on Tuesday, while a batch of large-cap shares hit new highs, with the help of portfolio managers snapping up top performers near the end of the quarter..N