SINGAPORE  - Chicago corn futures ticked higher on Tuesday, but the market was poised for its biggest quarterly drop since 2014 as the coronavirus pandemic prompts global lockdowns, curbing demand.

Wheat gained ground with the market set for a second quarter of gains as export curbs by top suppliers and higher demand from importers underpinned the market.

"We expect a 25%-50% drop in global ethanol production, which will free up 30-60 million tonnes of corn," said Ole Houe, director of advisory services at brokerage IKON Commodities.

"Suddenly there is lots of corn available."

A slump in world oil prices has reduced demand for corn-based fuel ethanol, which uses around a third of the U.S. corn crop. U.S. crude oil is down 65% in the first quarter as the virus lockdowns hit demand.

The most-active corn contract on the Chicago Board Of Trade has dropped nearly 12% this quarter, poised for the biggest three-month loss since September 2014.

Corn was up 0.2% at $3.42 a bushel as of 0314 GMT.

Wheat is up more than 2% for the quarter, set for the second straight three-month gain while soybeans are down more than 7% for the quarter, the biggest quarterly loss since June 2018.

U.S. Department of Agriculture (USDA) will issue two reports on Tuesday on prospective U.S. plantings and quarterly grain stocks.

Analysts polled by Reuters expect the report to show U.S. corn and soybean plantings above last year's weather-reduced acreage and tighter year-on-year stocks of grain, as of March 1.

Argentine shipments of soy, corn and other agricultural exports were delayed as the government ramped up inspections of incoming ships.

Soybeans have been underpinned by the risk of logistical snags in South America and reduced palm oil production in Malaysia due to the virus outbreak.

Weekly USDA export data showed a larger-than-expected volume of corn was inspected for export last week, while soybean and wheat inspections were near the lower-end of trade estimates.

Wheat prices are being underpinned on plans by Russia, the world's biggest exporter, to limit supplies.

Russia's economy ministry supports a proposal by the agriculture ministry to limit Russian grain exports to 7 million tonnes in April-June, it said on Monday.

Egyptian President Abdel Fattah al-Sisi has told the relevant authorities to boost strategic reserves of staple goods, a spokesman said on Monday, as global concerns about food security rise.

Commodity funds were net sellers of CBOT corn and wheat futures contracts on Monday and net buyers of soybeans, soyoil and soymeal, traders said. (Reporting by Naveen Thukral; Editing by Shounak Dasgupta)

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