GRAINS-Soybeans ease after 4-day rally, prospective China demand cap losses

By Naveen Thukral

SINGAPORE, Aug 25 (Reuters) - Chicago soybeans slid on Monday, falling for the first time in four sessions but hovering near a two-month high, as talk of China's return to the market limited the downside.

Corn firmed almost 1%, although gains were limited by expectations of a record U.S. harvest. Wheat rose after closing lower on Friday.

"The market got a little bit of push last week as there was talk of Chinese buyers making inquiries, but it is difficult to sustain such a rally until we actually see China purchasing U.S. beans," said one oilseed trader in Singapore.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 0.1% to $10.57 a bushel as of 0422 GMT, after climbing to a two-month high on Friday.

Corn Cv1 added 1% to $4.15-1/2 a bushel and wheat Wv1 gained 0.6% to $5.30-1/4 a bushel.

Market talk that China was inquiring about U.S. soybeans supported prices late last week, fuelling hopes that the world's top soybean buyer could end months of ignoring U.S. supplies amid a trade war with Washington.

Traders, however, said there were no clear signs of any purchases.

Expectations of stronger demand for U.S. soybeans helped offset a crop tour's forecast of higher U.S. production.

U.S. farmers will harvest a record corn crop and a bumper soybean crop in 2025 after ideal weather across much of the Midwest this summer, crop consultancy Pro Farmer said on Friday.

However, dry conditions in parts of the eastern Midwest and pockets of disease pressure in Iowa may limit soybean yield potential, according to Pro Farmer, which concluded its annual four-day tour across seven top-producing states this week.

It projected 2025 U.S. corn production at a record 16.204 billion bushels, with an average yield of 182.7 bushels per acre (bpa), and soybean production at 4.246 billion bushels, with an average yield of 53.0 bpa.

The 2025-2026 soybean crop in the world's largest soy producer, Brazil, is estimated at 176.5 million metric tons, up 3% from the previous cycle, consultancy AgResource said on Friday.

Large speculators trimmed their net short position in Chicago Board of Trade corn futures in the week to August 19, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed non-commercial traders, including hedge funds, raised their net short position in CBOT wheat and trimmed their net short position in soybeans.