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GRAINS-Soybeans up for 2nd session as easing U.S.-Iran tensions support

Naveen Thukral

* Soybeans up as U.S., Iran show signs of desire to avoid conflict

* Market eyes U.S. supply-demand report for price direction

(Recasts, added quote in paragraph 4) SINGAPORE, Jan 9 (Reuters) - Chicago soybean futures rose for a second session on Thursday, with prices supported by signs of de-escalation in tensions between Iran and the United States, although expectations of a record crop in Brazil limited gains. Wheat and corn futures edged higher. U.S. President Donald Trump on Wednesday tempered days of angry rhetoric and suggested Iran was "standing down" after it fired missiles at U.S. forces in Iraq overnight, as both sides looked to defuse a crisis over the U.S. killing of an Iranian general. "Easing of tensions in the Middle east is definitely supporting prices," said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney. Ample supplies from South America is likely to weigh on prices although a recovery in Chinese demand could limit the downside, Houe added. The most-active soybean contract on the Chicago Board Of Trade was up 0.1% at $9.47-3/4 a bushel, as of 0325 GMT, having firmed 0.3% on Wednesday. Wheat added 0.5% to $5.55-1/2 a bushel, and corn gained 0.1% at $3.84-3/4 a bushel. Grains and oilseed markets are focused on a supply-demand report to be released on Friday by the U.S. Department of Agriculture (USDA). It could include a revision to the U.S. corn harvest after adverse weather conditions.

Soybean demand in China, by far the world's biggest soybean buyer, is expected to recover this year from the damage caused by African swine fever in 2019. Grain traders are also waiting for more details on the Phase 1 U.S.-China trade deal due to be signed next week, which calls for bigger Chinese purchases of U.S. agricultural goods. Brazil, which is on track for a record soybean crop this year, could lose some gains it made in the global market during the U.S.-China trade war in the event that the two countries close a deal ending the dispute, a Brazilian Agriculture Ministry official said on Wednesday. Commodity funds were net buyers of CBOT wheat, soybean and soymeal futures contracts on Wednesday, net sellers of soyoil and net even in corn, traders said.

Grains prices at 0325 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 555.50 2.75 +0.50% +1.00% 540.33 60CBOT corn 384.75 0.50 +0.13% +0.00% 383.07 46CBOT soy 948.50 1.25 +0.13% +0.40% 921.46 60CBOT rice 13.04 -$0.03 -0.23% -0.11% $12.88 47WTI crude 60.10 $0.49 +0.82% -4.15% $59.92

Currencies

Euro/dlr $1.112 -$0.003 -0.31% -0.69%USD/AUD 0.6871 0.000 +0.04% -0.98%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)