* Soybeans gain more ground as global stock markets rise
* Concerns that coronavirus may curb China soy purchases (Adds quote, updates prices)
By Nigel Hunt
LONDON, Feb 5 (Reuters) - Chicago soybean futures rose for a third consecutive session on Wednesday as the market continued to recover from a two-month low reached earlier this week while corn and wheat were also higher, buoyed partly by gains in global stock markets.
World stocks rose on expectations for more central bank stimulus and reports that scientists have developed an effective drug against the fast spreading coronavirus.
“We have a bit of support from gains in stock markets but there is not much potential for soybean prices to go higher, certainly not for the moment, as the virus is curbing demand,” said National Australia Bank economist Phin Ziebell.
The most-active soybean contract on the Chicago Board of Trade rose 0.6% to $8.84-1/2 a bushel by 1145 GMT, having firmed 0.3% on Tuesday.
White House economic adviser Larry Kudlow said the coronavirus would delay a surge in U.S. exports to China expected from the Phase 1 trade deal.
The agreement, signed on Jan. 15 and taking effect on Feb. 15, suspended a new round of U.S. tariffs in exchange for Chinese purchases of agricultural, energy and manufactured goods and services.
“So far, the U.S. appears to be taking China’s reluctance to buy in its stride,” Commerzbank said in note.
Dealers said there were concerns that the soybean harvest in Brazil could be slowed by heavy rains during the next few days although the crop outlook remained favourable.
Brazilian farmers will produce an estimated 124 million tonnes of soybeans in the 2019/2020 cycle, up 1.9% from January’s forecast, INTL FCStone said on Tuesday, citing strong yields and area increases.
If the projection is confirmed, Brazil’s output will grow by almost 8% from last season, the forecaster said, citing a government estimate of 115 million tonnes produced in the previous cycle.
The most active CBOT corn contract was up 0.1% at $3.82-3/4 a bushel with the rains in Brazil also having the potential to delay corn plantings.
Ukraine officials and traders do not expect the coronavirus epidemic to have an impact on the country’s grain exports to China, although there are delays to transport and disruption to logistics throughout the country.
China is a major importer of Ukrainian corn.
Wheat prices rose with CBOT prices up 0.9% at $5.62-1/2 a bushel while March futures on Paris-based Euronext climbing 0.8% to 192.25 euros a tonne. (Additional reporting by Naveen Thukral in Singapore; Editing by Subhranshu Sahu and Alexandra Hudson)