GRAINS-Chicago soy, corn and wheat futures gain on China-US trade optimism

By Ella Cao and Lewis Jackson

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

U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to meet China's top economic official, He Lifeng, this weekend for talks.

"This news has bolstered investor sentiment," said Cheang Kang Wei, assistant vice president at StoneX in Singapore.

"The talks aim to de-escalate ongoing trade tensions between the world's two largest economies, which have been marked by steep tariffs that disrupted global markets and supply chains."

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 gained 1.22% to $10.54 a bushel, marking the biggest daily jump in nearly four weeks.

U.S. soybean exports have been under pressure due to the trade standoff with China - its top buyer - and growing competition from Brazil.

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.

Corn Cv1 also rose 1.15% to $4.60-6/8 a bushel, posting a second consecutive gain.

Wheat Wv1 rose 1.12% to $5.42 a bushel, partly buoyed by dryness concerns in Henan, a major wheat-producing province in China. Reduced output there could spur more Chinese demand for wheat imports.

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

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