Grains were higher to start the week with solid advances by soybeans of 7 cents and corn and wheat were up 3 to 5. Outside markets were recovering overnight with oil trying to claw its way back to $30 a barrel and S&P futures posted a better than 12% advance.
South Korea's Major Feedmill Group (MFG) purchased 55,000 MT of feed wheat to be sourced from Argentina in a deal on Tuesday, European traders said. Low priced Argentine wheat has made a strong reappearance in world markets after the country relaxed export restrictions, with rare sales of Argentine feed wheat to the United States also reported.
In Russia, wheat export prices fell further last week as the rouble dropped close to a record low against the dollar on weak oil prices. Black Sea prices for Russian wheat with 12.5 percent protein content were at $181-182 a MT at the end of last week, down $2-$3 from a week earlier, Russian agricultural consultancy IKAR said in a note. The rouble is down 6% against the dollar since the start of 2016.
Soybeans found support as rains in Matto Grasso, Brazil will limit harvest for the next few weeks. Also, some concerns of dryness in parts of Argentina; although the outlook does call for rain.
Oil prices rose more than 5 percent on Tuesday as investors viewed bullish Chinese oil demand data as a buying trigger, but contracts remained near 12-year lows as the IEA said the market should stay oversupplied this year. Traders said prices drew support from strong oil demand in China. Preliminary Reuters calculations based on government figures showed record oil consumption of 10.32 million barrels per day (bpd), up 2.5% from 2014, defying slowing growth in the world's second-largest economy.
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