GRAINS-Soy futures jump on hopes for US export demand, corn extends rebound

By Tom Polansek

CHICAGO, July 16 (Reuters) - Chicago Board of Trade soybean futures jumped on hopes for U.S. export demand on Wednesday, while corn futures rose for a third day to extend a recovery from contract lows, analysts said.

The gains came after non-threatening U.S. weather and expectations for large harvests have pressured prices for both crops recently.

The U.S. Department of Agriculture reported that exporters sold 120,000 metric tons of U.S. soybeans to undisclosed destinations for shipment in the 2025-26 marketing year.

Deals with China, the world's biggest soybean importer, are often initially reported as sales to undisclosed destinations. However, the buyer of the 120,000 tons was not confirmed.

China is behind schedule compared to previous years in booking U.S. soybeans from the upcoming harvest amid trade tensions with Beijing.

Separately, U.S. President Donald Trump said Indonesia, a top-five U.S. soybean importer, committed to purchasing $4.5 billion in American agricultural products after reaching a trade deal.

"After August soybeans traded down to early April levels, they are rallying on technical buying and renewed optimism that U.S. soybean exports will remain good relative to the pessimistic views over current tariff headwinds," said Terry Reilly, senior agricultural strategist for Marex.

Most-active soybean futures Sv1 were up 16-1/2 cents at $10.18-1/4 per bushel by 12:10 p.m. CDT (1710 GMT) after falling on Monday to their lowest since April 9.

Corn futures Cv1 advanced 4-1/4 cents to $4.24 a bushel. On Monday, new-crop December futures CZ25 set a contract low of $4.07-1/2.

Wheat futures Wv1 also rose, with the most-active contract up 2-3/4 cents at $5.40-3/4 a bushel.

"Following a new low reached on Monday, a wave of short-covering by funds provided support to corn," Argus analysts said.

The USDA said on Monday that U.S. corn and soybean crop ratings were the highest for mid-July since 2016. Traders were monitoring weather forecasts for signs that conditions may turn too hot or wet.

"While not ideal, overall July weather is expected to be generally favorable for corn in the Midwest," weather forecaster Vaisala said.