GRAINS-Chicago soybeans rise on China trade optimism; corn, wheat firm

BEIJING, Oct 23 (Reuters) - Chicago soybean futures rose on Thursday, supported by hopes of a potential trade deal with top buyer China, while news of a Japanese proposal to boost purchases of U.S. soybeans lent further support.

Corn firmed on technical buying and expectations that the U.S. harvest may be nearing completion, while wheat gained on signs of renewed global export demand.

FUNDAMENTALS

As of 0100 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.07% at $10.35-1/2 per bushel, hovering near a one-month high.

Corn Cv1 gained 0.18% to $4.23-3/4 a bushel, while wheat Wv1 added 0.2% to $5.04-3/4 a bushel.

U.S. President Donald Trump said on Wednesday he expected to reach agreements with Chinese President Xi Jinping when they meet in South Korea next week that could range from resumed soybean purchases by Beijing to limits on nuclear weapons.

Japan's new government is finalising a purchase package, including U.S. pickups, soybeans and gas, to present to Trump in trade and security talks next week, two sources told Reuters.

In Brazil, oilseed group Abiove projected the South American country's 2025/26 soybean harvest at a record-high 178.5 million metric tons, up from 171.8 million tons a year earlier.

U.S. farmers have been slow to sell corn as harvest nears completion, with many holding grains in storage while awaiting higher prices, analysts have said.

Algeria's state grains agency OAIC bought milling wheat in an international tender, European traders said. The volume was not immediately clear, though initial estimates were as high as 500,000 to 600,000 tons.

The U.S. Department of Agriculture typically releases weekly export sales data on Thursdays, but reporting has been suspended due to a lapse in federal funding.

Commodity funds were net buyers of CBOT corn, wheat and soymeal futures on Wednesday, traders said. COMFUND/CBT

MARKET NEWS

Most major stock indexes fell on Wednesday, with Netflix NFLX.O shares down after the company's outlook disappointed, while spot gold prices declined, a day after they had the sharpest single-day drop in over five years. MKTS/GLOB