GRAINS-Chicago soybeans continue rally on China-US trade hopes; wheat, corn retreat

BEIJING, Oct 28 (Reuters) - Chicago soybean futures extended gains on Tuesday, hovering near a more than four-month high hit in the previous session, on hopes that China will resume purchases of U.S. soybeans after President Donald Trump said both countries were set to reach a trade deal during his visit to South Korea this week.

Corn and wheat edged lower, weighed down by abundant supplies.

FUNDAMENTALS

As of 0034 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 gained 0.16% to $10.69 per bushel.

Corn Cv1 slipped 0.12% to $4.28-1/4 a bushel, while wheat Wv1 fell 0.05% to $5.25-3/4 a bushel.

Trump said the U.S. and China were set to "come away with" a trade deal, as he was expected to meet Chinese President Xi Jinping on Thursday in South Korea.

U.S. Treasury Secretary Scott Bessent told NBC on Sunday that China would make "substantial" purchases of U.S. soybeans under a proposed trade deal framework, after Chinese buyers avoided soy from the autumn U.S. harvest due to high tariffs.

Analysts estimated the U.S. corn harvest was 72% finished as of Sunday and the soybean harvest was 84% complete, according to a Reuters poll. Winter wheat planting was seen 84% complete.

Russian wheat export prices changed little last week, with analysts continuing to raise their forecasts for October shipments.

Jordan's state grain buyer issued an international tender to buy up to 120,000 tons of milling wheat that can be sourced from optional origins, European traders said.

Winter crop sowing is progressing well across most of the European Union, although delays are reported in parts of southeastern Europe due to adverse weather, crop monitoring service MARS said on Monday.

Commodity funds were net buyers of CBOT soybean and grain futures on Monday, traders said. COMFUND/CBT

MARKET NEWS

Global stocks rallied on Monday to an intraday record, while the dollar eased on optimism that a potential Sino-U.S. trade deal was on the horizon, as investors awaited a slew of central bank policy announcements and earnings from several megacap companies. MKTS/GLOB