GRAINS-Chicago grains slip on weak demand; USDA report eyed

BEIJING, May 8 (Reuters) - Chicago soybean and grain futures eased on Thursday as traders weighed weak demand and rising global competition and positioned ahead of the U.S. Department of Agriculture's (USDA) report next Monday, despite support from U.S.-China trade talk optimism.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 dipped 0.02% to $10.39 a bushel as of 0118 GMT, extending losses to the fourth consecutive session.

Wheat Wv1 slipped 0.09% to $5.34 a bushel and corn Cv1 fell 0.28% to $4.48 a bushel.

Hopes of a thaw in U.S.-China trade tensions lifted agricultural markets on Wednesday following news of an upcoming meeting between officials from both countries.

However, sentiments were soured as U.S. President Donald Trump said he would not preemptively lower the China tariffs.

Traders adjusted their positions ahead of the USDA report, which will offer the first glimpse of supply-demand estimates for 2025-26.

Favourable weather across the U.S. Midwest is expected to support smooth planting of corn and soybeans. Meanwhile, rains across dry areas of the Black Sea wheat belt pressured wheat.

Brazil's soybean exports could fall 900,000 tons in May from April this year and May last year to 12.6 million tons despite a record harvest, grain exporters association Anec said.

Commodity funds were net sellers of corn, soyoil and soybean futures contracts and net buyers of soymeal futures contracts and net even on wheat futures, traders said. COMFUND/CBT

MARKET NEWS

Equities rose in a volatile session on Wednesday but U.S. Treasury yields fell after the Federal Reserve left interest rates unchanged while warning of higher inflation and labour market risks. MKTS/GLOB

DATA/EVENTS (GMT)

0600 Germany Industrial Output MM, Production YY SA Mar

0600 UK Halifax House Prices MM, YY Apr

1102 UK BOE Bank Rate May

1230 US Initial Jobless Clm 3 May, w/e

1430 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 2 May, w/e