GRAINS-Chicago soybeans dip on rising competition; wheat rises on China dry weather

BEIJING, May 9 (Reuters) - Chicago soybean futures eased on Friday due to weak demand and rising global competition from Latin American countries, amid caution ahead of the looming U.S.-China talks this weekend and a U.S. Department of Agriculture (USDA) report on Monday.

Wheat gained on drought concerns in China, raising hopes for increased Chinese demand in the international market, though favourable weather in the U.S., Ukraine and Russia limited gains. Corn also rose.

FUNDAMENTALS

The most-active CBOT soybean contract Sv1 fell 0.29% to $10.42 a bushel as of 0122 GMT and was on track for the second straight week of losses.

Wheat Wv1 gained 0.33% to $5.31 and corn Cv1 rose 0.28% to $4.49, but both remained set for their third consecutive weekly decline.

Caution prevailed in the market ahead of the U.S.-China trade talks this weekend in Switzerland, as investors hoped for the easing of tensions that have hurt U.S. soybean and grain exports.

Argentina's Buenos Aires grains exchange raised its forecast for the 2024-25 soybean harvest to 50 million metric tons from 48.6 million tons on Thursday, citing better yields.

Dry weather in China's Henan province, a major wheat-growing area, fuelled expectations of stronger Chinese demand in the international market. While China was the top wheat buyer in 2022 and 2023, imports dropped sharply last year.

Meanwhile, rains in the U.S. Plains improved conditions for the wheat crop, while forecasts of precipitation in Ukraine and Russia eased crop concerns, limiting gains, analysts said.

Traders are positioning ahead of the USDA's report on Monday, which will provide the first 2025–26 supply and demand estimates.

Corn was supported by a strong export demand, but favourable U.S. weather and hopes for improved U.S.-China trade relations tempered optimism.

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

MARKET NEWS

Global equities were slightly higher on Thursday, with Wall Street outperforming, while the dollar and Treasury yields also gained after the United States and United Kingdom outlined a trade deal, fueling hopes for compromises with other countries. MKTS/GLOB

DATA/EVENTS (GMT)

0645 France Reserve Assets Total Apr

China Exports, Imports YY Apr

China Trade Balance USD Apr