GRAINS-Soybeans extend gains as China pledges to fulfill U.S. purchases

Colin Packham and Sybille de La Hamaide

* Soybeans firm for sixth session

* Corn sheds most of the gains from Friday

* Wheat edges higher, up 0.1%

SYDNEY/PARIS, Feb 10 (Reuters) - U.S. soybean futures rose for a sixth straight session on Monday on expectations that Beijing will meet the purchasing targets agreed in the Phase 1 trade deal with Washington, although concerns about a coronavirus outbreak in China capped gains. The most active soybean futures contract on the Chicago Board Of Trade was up 0.3% at $8.84-1/2 a bushel at 1218 GMT. The contract firmed 0.1% in the previous session. Corn fell 1%, paring most of its gains in the previous session, while wheat shed 0.1% to $5.58 a bushel, having closed up 0.4% on Friday. Chinese President Xi Jinping told U.S. President Donald Trump that China would meet its Phase 1 trade deal purchasing targets despite delays linked to the coronavirus, White House adviser Larry Kudlow told Bloomberg Television. Traders will be closely watching for the U.S. Department of Agriculture's monthly supply and demand forecast report on Tuesday. The report will factor in the broad goals of the Phase 1 trade deal, but details of China's purchase commitments will not be part of it, the agency's top economist said last week.

Analysts said the reiteration of Chinese commitments to buy U.S. supplies was underpinning gains. However, the coronavirus epidemic that has killed more than 900 people in top buyer China continued to weigh on prices. "The market is comforted about Chinese demand but getting the product to port is one thing. Getting truck drivers to transport the supplies is another," said Phin Ziebell, agribusiness economist, National Australia Bank. "There are risks associated with coronavirus in China." Traders also noted the competition U.S. farmers are likely to face from an expected bumper crop from Brazil. Chinese importers have recently booked French wheat for shipment during the first half of 2020, traders said, adding to an unusual run of French exports to China in the past few months.

Prices at 1218 GMT

Last Change Pct End YtdMove 2019 Pct


CBOT wheat 558.00 -0.75 -0.13 558.75 -0.13CBOT corn 379.75 -3.75 -0.98 387.75 -2.06CBOT soy 884.25 2.25 0.26 955.50 -7.46Paris wheat Mar 194.00 0.75 0.39 188.75 2.78Paris maize Jan 167.25 -0.25 -0.15 168.50 -0.74Paris rape Feb 390.50 -1.75 -0.45 408.50 -4.41WTI crude oil 50.32 0.00 0.00 61.06 -17.59Euro/dlr 1.09 0.00 0.05 1.1210 -2.34

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne

(Reporting by Colin Packham; Editing by Aditya Soni and Mark Potter)