GRAINS-Soybeans fall from peak on profit-taking, wheat hits new lows

By Heather Schlitz

CHICAGO, May 13 (Reuters) - Chicago soybeans edged down on profit taking on Tuesday after hitting a three-month high in the previous session on a temporary truce in the U.S.-China trade war and a bullish U.S. Department of Agriculture report, traders said.

Wheat futures sank to contract lows as higher than expected forecast of U.S. stocks and a sharp improvement in U.S. crop conditions added to supply pressure, though futures recovered later in the session. Corn also fell on technical trading.

The most-active CBOT soybean contract Sv1 was down 1-14 cent to $10.69-3/4 as of 11:15 CT (1615 GMT), below Monday's three-month peak of $10.74-3/4. CBOT corn Cv1 dipped 7-3/4 cents to $4.40-1/4 per bushel.

Monday's deal buoyed the soybean market, in which China dominates global imports, by boosting hopes for revived Chinese demand for U.S. farm goods. Monday's U.S. Department of Agriculture supply and demand report also provided a bullish jolt to the market after the agency pegged U.S. soybean ending stocks below analyst estimates.

"We had the euphoria about the report out yesterday and had the big move up in beans," Jason Ward, director of Northstar Commodity, said. "Managed money was long beans and they were correct going into the report, and today they're taking money off the table."

Meanwhile, ideal corn and soy planting weather in most of the U.S. Midwest has added bearish pressure to prices.

CBOT wheat Wv1 rose 2-1/2 cents to $5.17-3/4 a bushel, after earlier reaching the lowest on a continuous chart since August 2020 at $5.06-1/4. All soft red wheat contracts hit lifetime lows on Tuesday as traders digested bearish USDA reports.

The USDA projected U.S. 2025-26 wheat ending stocks above analyst estimates, contributing to a slight expected increase in global stocks.

In a separate report issued after Monday's close, the USDA also estimated that the condition of U.S. winter wheat crops improved sharply last week.