GRAINS-Soybeans, corn dip on US-China trade jitters, benign US weather; wheat firms
BEIJING, June 12 (Reuters) - Chicago soybeans fell on Thursday as markets cooled following a U.S.-China trade truce framework that didn't include agricultural details, while favourable weather across the U.S. Midwest crop belt added pressure.
Corn also edged lower on benign weather and strong production prospects, while wheat firmed.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 lost 0.36% at $10.46-6/8 per bushel as of 0109 GMT.
* Wheat Wv1 rose 0.14% to $5.35 a bushel after three straight sessions of losses, while corn Cv1 eased 0.06% to $4.36-6/8 a bushel.
* On Wednesday, U.S. President Donald Trump said he was very happy with the deal that restored a fragile truce in the U.S.-China trade war, a day after negotiators from Washington and Beijing agreed on a tariff rate framework.
* However, traders stayed cautious as the deal lacked specifics on agriculture. China is the top buyer of U.S. soy.
* Soybeans and corn were pressured by favourable Midwest weather, with no signs of damaging heat and only "patchy dryness" in 15% to 20% of the crop belt, the Commodity Weather Group said.
* On Wednesday, Argentina's Rosario grains exchange slightly trimmed its wheat harvest estimate for the 2025-26 season due to floods caused by recent heavy rains.
* However, improved crop conditions in the U.S. and Russia kept a lid on wheat prices.
* Traders are also positioning ahead of the monthly supply-demand reports and weekly export sales report due later in the day.
* Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Wednesday, net even in wheat and small net buyers of soyoil futures, traders said.
MARKET NEWS
Wall Street stocks and the dollar fell on Wednesday, while U.S. Treasury yields eased, amid fresh tension in the Middle East, a lack of detail in a U.S.-China trade deal and U.S. consumer prices showing only a mild increase.
DATA/EVENTS (GMT)
0600 UK GDP Est 3M/3M April
0600 UK GDP Estimate MM, YY April
0600 UK Services MM, YY April
0600 UK Manufacturing output April
1230 US Initial Jobless Clm Weekly
1230 US PPI Machine Mfg May
1600 US Federal Reserve issues Quarterly Financial Accounts of the United States
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