GRAINS-Soybeans buoyed by higher crude oil; wheat sags

By Julie Ingwersen

CHICAGO, June 3 (Reuters) - U.S. soybean futures rose on Tuesday, rallying from a seven-week low struck a day earlier, as strong crude oil prices lifted soyoil futures and traders weighed expectations that the leaders of the United States and top global soy buyer China will speak this week.

Corn futures firmed after dipping to multi-month lows overnight while wheat futures declined on improving U.S. crop ratings and a stronger dollar, which tends to make U.S. grains less competitive.

Chicago Board of Trade July soybean futures SN25 settled up 7-1/4 cents, or 0.7%, at $10.40-3/4 per bushel and July soyoil BON25, a key feedstock for biodiesel fuel, ended up 0.53 cent, or 1.2%, to finish at 46.81 cents per pound.

CBOT July corn CN25 rose 1/4 cent to end at $4.38-1/2 a bushel while July wheat WN25 fell 3 cents to settle at $5.36 a bushel.

U.S. crude oil prices CLc1 were up about 1.3%, lifting the CBOT soy complex as well as corn, given both crops' role in production of biofuels. Energy traders cited geopolitical tensions between Russia and Ukraine as well as the U.S. and Iran. O/R

"The higher crude oil trade over the past couple of days has finally given a little bit of life to soybean oil, which is in turn underpinning and creating a little bit of short covering in beans," said Terry Reilly, senior agricultural strategist for Marex.

On the trade front, U.S. President Donald Trump and Chinese leader Xi Jinping are set to speak this week, the White House said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. Worries about demand for U.S. soybeans from the world's biggest oilseed consumer have hung over soybean futures.

Meanwhile, Reilly noted, generally favorable U.S. crop weather has bolstered production prospects in the Corn Belt, keeping a lid on rallies. "The weather looks pretty good over the next couple of weeks, so I'm looking for a choppy trade going forward," Reilly said.

The U.S. Department of Agriculture on Monday rated 67% of U.S. soybeans in good to excellent condition in its initial ratings of the 2025 soy crop, while for corn, the agency's rating improved to 69% good-to-excellent, up 1 percentage point from the previous week. Rains were crossing portions of eastern Kansas, Nebraska, Iowa, Minnesota and Wisconsin on Tuesday.

Wheat futures turned lower after the USDA's weekly ratings for the U.S. winter and spring wheat crops came in above most trade expectations.

The market had firmed in early moves on news that Ukraine had hit the road and rail bridge linking Russia and the Crimean peninsula, as well as also knocking out power in parts of other Russian-held territory in southern Ukraine.

The developments revived concerns about a hardening conflict between the two grain-exporting countries.