GRAINS-Chicago soybeans set for best weekly gain in 10 on trade optimism

BEIJING/PARIS, Oct 24 (Reuters) - Chicago soybean futures retreated on Friday from a one-month high as crude oil prices dropped, but remained on track for their biggest weekly gain in 10 weeks on hopes of renewed trade talks with top buyer China.

As of 1010 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 edged 0.14% lower to $10.43-1/4 per bushel, but held near its recent peak.

Soybean and corn futures had climbed in the previous session, tracking stronger crude oil prices after fresh U.S. sanctions on Russia's top two oil producers heightened supply concerns.

The rally cooled on Friday as U.S. crude futures eased. Soybeans and corn often move in tandem with crude due to their use in biodiesel production.

Markets are focused on an upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea, with Trump reiterating that soybean purchases will be a major point of discussion.

"The possibility of a trade deal with China has kept the market optimistic. We expect current volatility in the soybean market to persist. A definitive resolution to these issues is unlikely in the near term," said Ishan Bhanu, lead agricultural commodities analyst at Kpler.

Chinese buyers have shunned U.S. new-crop supplies in favour of South American cargoes. A trade deal could help U.S. farmers avert steep losses, but the window for fresh purchases is narrowing.

"If a deal is reached in early November, China could secure shipments for the second half of December or January. Beyond February, however, Brazil's new crop will enter the market," Bhanu said.

Corn Cv1 dipped 0.35% to $4.26-1/2 a bushel, while wheat Wv1 lost 0.19% to $5.12 a bushel. Both remained poised for a second consecutive weekly gain.

The market continues to watch for clearer indications of U.S. corn crop size, amid anecdotal reports from farmers of underwhelming yields.

On the global front, the International Grains Council has raised its forecast for 2025/26 global wheat production with the crop outlook upgraded for Russia, the United States and Argentina.

"The IGC's current forecasts for global (wheat) production and stocks in the major exporting countries are around 11 million tons higher than the USDA's September forecasts... We are therefore revising our price forecast for wheat on the CBOT at the end of the year downwards to $5.20 per bushel from $5.40 Previously," Commerzbank said in a note.