GRAINS-Soybeans hit seven-week low; corn eases, wheat climbs

By Julie Ingwersen

CHICAGO, June 2 (Reuters) - Chicago Board of Trade soybean and soyoil futures fell to their lowest levels in seven weeks on Monday on worries about demand for U.S. oilseed supplies and generally favorable crop weather, analysts said.

Corn futures followed soybeans lower. But wheat futures rose on short covering as a Ukrainian drone attack in Russia shifted attention back on the war between the two grain exporters, and as the U.S. dollar declined.

CBOT July soybeans SN25 settled down 8-1/4 cents at $10.33-1/2 per bushel after dipping to $10.32-1/2, the contract's lowest level since April 11. July corn CN25 ended down 5-3/4 cents at $4.38-1/4 a bushel while CBOT July wheat WN25 settled up 5 cents at $5.39 a bushel.

Pressure in soybeans stemmed from trade tensions with China, the world's biggest soybean buyer, after President Donald Trump on Friday accused China of violating an agreement with the U.S. to mutually roll back tariffs. Trump and Chinese leader Xi Jinping will likely speak this week, the White House said on Monday.

Ample Brazilian soy supplies continue to hang over the market. Agribusiness consultancy AgRural raised its forecast for Brazil's 2024/25 soybean crop by 1.3 million tons to 169 million tons, citing improved yields.

Uncertainty over U.S. biofuel policy pressured CBOT soyoil BOv1 futures, which also hit their lowest level since mid-April.

"Soyoil and soybean prices continue the selloff started last week as chart signals turn negative, with little help from the China-U.S. trade talks that have broken down," StoneX Chief Commodities Economist Arlan Suderman wrote in a client note.

After CBOT markets closed, the U.S. Department of Agriculture rated 67% of U.S. soybeans in good to excellent condition in its initial ratings of the 2025 soy crop, just below an average of analyst estimates for 68% but roughly on par with previous years. Soybean planting was 84% complete, ahead of the five-year average of 80%.

The USDA's corn rating improved to 69% good-to-excellent, up a percentage point from last week and in line with trade expectations. Planting was 93% complete, matching the five-year average.

The USDA rated 50% of U.S. spring wheat in good to excellent condition, up 5 percentage points, while winter wheat ratings improved by 2 points, to 52% good-to-excellent. Both figures exceeded most analysts' expectations.