GRAINS-Chicago soybeans extend gains on US-China trade optimism

PARIS/BEIJING, Oct 21 (Reuters) - Chicago soybean futures rose for a fifth straight session on Tuesday to reach a new one-month peak, as optimism over U.S.-China trade talks lifted hopes for renewed soybean purchases by the world's top buyer.

Corn inched up with support from soybeans, as traders continued to assess U.S. harvest results in the absence of official data due to a government shutdown.

Wheat ticked down to hold near a five-year low, as increased production estimates for major exporting countries maintained supply pressure.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.5% at $10.37 per bushel by 1111 GMT. It earlier set a one-month high for the second day in a row at $10.37-3/4.

U.S. President Donald Trump said on Monday he expects to work out a fair trade deal with Chinese President Xi Jinping and that he wants Beijing to buy soybeans, ahead of his planned meeting with Xi in South Korea next week.

"Soybeans, whose export sales to China have stalled, are seeing a surge of optimism and hopes for a turnaround," Argus analysts said.

U.S. harvesting and early planting in Brazil were sustaining supply pressure.

Analysts surveyed by Reuters on average estimated that the U.S. soybean crop was 73% harvested by Sunday and the corn harvest was 59% complete, though a U.S. government shutdown continued to deprive the market of official harvest data.

In Brazil, planting of the country's 2025/26 soybean and first-season corn crops were ahead of last year's pace as of Thursday, consultancy AgRural said on Monday.

Traders said the corn market faced some pressure from tensions between the U.S. and Colombia, a major buyer of U.S. corn.

CBOT corn Cv1 was unchanged on the day at $4.23-1/4 a bushel. CBOT wheat Wv1 eased 0.4% to $5.02-3/4 a bushel, close to a five-year low of $4.92-1/4 struck last week.

Analysts have raised their estimates for Australia's wheat harvest, a Reuters poll showed on Monday, while consultancy IKAR said on Tuesday it had further raised its estimate for Russia's wheat crop.

On the demand side, major importer Algeria issued a tender to be held on Wednesday, according to traders.

"Although upbeat estimates for Russian and Australian wheat crops weighed on prices, the softer levels likely encouraged Algeria to step into the market for soft wheat," CM Navigator analyst Donatas Jankauskas said.