Financial Post (07/01/2020) - SYDNEY — U.S. soybean futures fell on Wednesday as sentiment soured after Iran’s missile attack on U.S.-led forces in Iraq, sparking fears of wider war in the Middle East.

FUNDAMENTALS

* The most-active soybean futures on the Chicago Board Of Trade were down 0.4% at $9.40-1/4 a bushel by 0147 GMT, having closed down 0.1% on Tuesday.

* Corn futures fell 0.5% at $3.82-3/4, having closed flat in the previous session.

* Wheat futures slid 0.7% to $5.46-1/4 a bushel, having closed little changed on Tuesday.

* Iran said it launched a missile attack on U.S.-led forces in Iraq in the early hours of Wednesday in retaliation for the U.S. drone strike on an Iranian commander.

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* The U.S. Department of Agriculture (USDA) will on Friday issue a latest report that is expected to show smaller U.S. corn and soy crops, lower U.S. winter wheat seedings and tighter end-of-season grain stocks.

* Grain markets were also awaiting further details on a Phase 1 U.S.-China trade deal that is expected to significantly bolster Chinese purchases of U.S. agricultural goods.

MARKET NEWS

* The safe-haven Japanese yen jumped and gold shot higher on heightened tensions in the Middle East, sending investors rushing to safety.

* Oil rose sharply, with U.S. crude rising nearly $3, after Iran’s rocket attack on a base hosting U.S. troops in Iraq raised fears of a disruption in oil supplies.

* Wall Street’s major indexes declined on Tuesday as investor caution persisted amid a dispute between the United States and Iran, while energy shares fell as oil prices gave back some recent gains. (Reporting by Colin Packham; editing by Uttaresh.V) - Reuters