GRAINS-Chicago soy, corn and wheat futures gain on China-U.S. trade optimism

BEIJING, May 7 (Reuters) - Chicago soybean and grain futures climbed on Wednesday, supported by news of an upcoming meeting between the U.S. and Chinese officials in Switzerland, raising hopes of easing trade tensions.

Wheat was also supported by the dry weather in China's key growing province of Henan.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 added 0.86% to $10.50 a bushel, as of 0106 GMT. Wheat Wv1 rose 0.51% to $5.39 a bushel and corn Cv1 inched up 0.77% to $4.59 a bushel.

U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet China's top economic official in Switzerland on Saturday in what could mark the first step toward resolving a trade war that has disrupted global markets.

Wheat prices were buoyed by dryness concerns in Henan, a major wheat-producing province in China. A reduction in wheat output could lead to increased Chinese demand for wheat imports.

However, rainfall in the Black Sea region and improved U.S. harvest prospects are capping further price gains.

Favourable crop conditions in Brazil are weighing on corn prices, offsetting support from strong U.S. export demand.

Brazilian farmers are poised to expand soybean acreage by around 500,000 hectares in the 2025/26 season starting in September, according to Andre Pessoa, president of agribusiness consultancy Agroconsult.

Argentina's already-delayed soy harvest has stalled further, a meteorologist said on Tuesday, following heavy rains and high humidity in the nation's main agricultural regions.

Commodity funds were net sellers of Chicago Board of Trade soybean, soymeal and corn futures contracts on Tuesday, traders said. Funds were net buyers of wheat and soyoil contracts, they said. COMFUND/CBT

MARKET NEWS

In currencies, the dollar lost ground against multiple currencies while the euro rose after German conservative leader Friedrich Merz was elected chancellor by parliament in a second voting round, hours after a shock defeat. MKTS/GLOB

DATA/EVENTS (GMT)

0030 Japan JibunBK SVC PMI, Comp Op Final SA Apr

0600 Germany Industrial Orders MM Mar

0600 Germany Manufacturing O/P Cur Price, Consumer Goods SA Mar

0830 UK S&P GLOBAL PMI: MSC COMPOSITE - OUTPUT Apr