GRAINS-US soybeans back near six-week low as China buys Argentine crop

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Sept 24 (Reuters) - Chicago soybeans fell back towards a six-week low on Wednesday as rising estimates of the amount of Argentine soy booked by Chinese buyers this week kept attention on stalled U.S.-China trade.

Corn edged down, with the market assessing early U.S. harvesting for yield indications, while wheat extended a recovery from contract lows with support from importer demand.

A rise in the dollar index =USD kept a lid on Chicago prices. FRX/

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.4% at $10.08 a bushel by 1048 GMT, close to a six-week low of $10.05 hit on Tuesday.

The market had steadied by Tuesday's close to hold the psychological $10 floor, but resumed its decline on Wednesday.

Traders on Wednesday said that Chinese buyers have booked around 20 cargoes of Argentine soybeans, or roughly 1.3 million tons, since Argentina temporarily eliminated export taxes on soybeans, grains and byproducts earlier this week.

Traders had on Tuesday cited a volume of 10 to 15 cargoes bought by Chinese buyers.

Argentina's export tax waiver has reinforced China's shift towards South American soybeans as it remains locked in a trade dispute with Washington.

"The U.S. market is facing pressure as there is no demand from China and the U.S. harvest is gathering pace," said one trader in Singapore.

Hopes of a resumption in U.S. soybean trade with China were dashed when a call on Friday between U.S. President Donald Trump and his Chinese counterpart Xi Jinping brought no news on agricultural commodities.

Soybean and corn futures also face seasonal supply pressure from the onset of the U.S. harvest, though doubts over yields have helped underpin the markets.

The U.S. corn harvest was 11% complete by Sunday and the soybean harvest was 9% finished, with condition ratings for both crops declining last week, according to U.S. government data.

"Weather conditions in the southern Corn Belt are being closely monitored, as fieldwork struggles to progress at a steady pace," Argus analysts said in a note.

CBOT corn Cv1 eased 0.2% to $4.25-1/2 a bushel while CBOT wheat Wv1 inched up 0.1% to $5.21-1/4 a bushel.

Wheat was moving away from contract lows, helped by a wave of demand from importers, including an Algerian tender purchase on Tuesday that traders estimated at 600,000 tons or higher. GRA/TEND

Expectations of abundant supply from exporting countries, reinforced by Argentina's tax suspension, nonetheless hung over the wheat market.