GRAINS-Soybean prices edge higher with harvest and China in focus

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Oct 6 (Reuters) - Chicago soybean futures edged up on Monday, with strength in crude oil helping the market to recover from a fall on Friday while traders await updates on the U.S. harvest and government aid to compensate soy farmers for China shunning U.S. supplies.

Corn and wheat also rose, with wheat drawing support from news of a Saudi purchase in an import tender.

The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.5% at $10.22-3/4 a bushel by 1149 GMT.

Soybeans, widely used for biodiesel fuel via byproduct soyoil, were supported by a rise in the price of crude oil LCOc1. O/R

Soybeans are recovering from a seven-week low struck last Wednesday as the lack of Chinese demand during its trade dispute with Washington coincides with the U.S. harvest season.

U.S. Treasury Secretary Scott Bessent has said an announcement would be made this Tuesday about government support for American farmers affected by the lack of purchases by China, by far the world's biggest soybean importer.

During his first term, Donald Trump's administration rolled out $28 billion in aid for farmers over 2018-2019 to compensate for a previous trade standoff with China.

Traders say any new farmer payments are unlikely to boost market prices significantly until the dispute is resolved.

"We don't see an upside in Chicago soybean futures until China starts taking U.S. soybeans," said one trader in Singapore.

CBOT corn Cv1 was up 0.1% to $4.19-1/2 a bushel and CBOT wheat Wv1 added 0.2% to $5.16-1/2 a bushel.

Corn and wheat been recovering from multi-week lows touched last week when wheat almost reached a five-year low.

Like soybeans, corn faces supply pressure from the U.S. harvest.

"Weather in the U.S. was favourable for rapid harvest progress last week, but actual data will not be available today due to the government shutdown," commodity data firm CM Navigator said in a note.

The shutdown started last Wednesday after Congress failed to pass short-term funding measures and has interrupted government data reporting, including weekly grain export and crop progress figures.

The U.S. Department of Agriculture's monthly supply and demand report due on October 9 is likely to be postponed.

Elsewhere, Saudi Arabia bought 455,000 metric tons of wheat for shipment in December and January, the country's General Food Security Authority (GFSA) said on Monday.