* Soybean futures rise for 2nd day, hit highest since late Jan
* Wheat falls for 5th session on expectations of higher supply (Adds details, quote in paragraphs 3,4)
By Naveen Thukral
SINGAPORE, March 3 (Reuters) - Chicago soybean futures rose for a second session on Tuesday to hit six-week highs, as rising expectations of a coordinated global effort to offset the economic impact of the coronavirus outbreak buoyed investor sentiment.
Wheat fell for a fifth consecutive session on expectations of higher production in drought-hit Australia.
“Markets have had a big positive mood swing,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“The current context reveals the naivety of that model of financial markets. We are this morning just as uncertain about how the COVID 19 epidemic and how its consequences will play out as we were yesterday morning.”
The most-active soybean contract on the Chicago Board Of Trade was up 0.2% at $9.03 a bushel by 0318 GMT after climbing to $9.06 a bushel, the highest since Jan. 24.
Corn was up 0.2% at $3.76-1/4 a bushel, while wheat lost 0.1% to $5.23 a bushel.
Global shares and oil prices extended their rebound on mounting speculation policymakers around the world would move to ease the economic fallout from the fast spreading coronavirus.
China, the world’s biggest soybean importer, will need to buy U.S. soybeans to sustain a rally in prices, analysts say.
Traders are waiting for a big increase in Chinese purchases after Beijing agreed to buy more U.S. farm products as part of an initial trade deal signed in January. So far, the purchases have not materialised.
The U.S. Department of Agriculture said 670,608 tonnes of U.S. soybeans were inspected for export in the week ended Feb. 27, within analysts’ estimates.
U.S. wheat export inspections of 654,097 tonnes topped expectations, while corn inspections of 896,221 tonnes were within expectations.
The wheat market is being weighed down by expectations of bumper production in Australia although it is a bit early as a bulk of the crop will be planted in April and May.
Australia’s chief commodity forecaster is predicting a 40.4% rise in wheat production this year, arguing that recent heavy rains are likely to encourage farmers to sow more grain.
The forecast from the Australian Bureau of Agricultural and Resource Economics and Sciences would lift 2020/21 production to 21.3 million tonnes, compared to the twelve-year low of 15.17 million tonnes in 2019/20 when drought across the east coast wilted crops.
Commodity funds were net buyers of CBOT corn, soybean, soymeal and soyoil futures contracts on Monday, and net sellers of wheat, traders said. (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)