GRAINS-Soybeans pause their rally as traders await US-China deal

CANBERRA, Oct 29 (Reuters) - Chicago soybean futures fell on Wednesday as U.S. farmers took profits after prices climbed in the previous session to their highest level since July 2024, fuelled by optimism that China may resume purchases of U.S. soybeans.

Corn futures also slipped, while wheat edged higher. Both contracts had tracked soybeans upward in recent sessions.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.5% at $10.90 a bushel, as of 0256 GMT, after rising as high as $11.08 on Tuesday.

CBOT corn Cv1 fell 0.2% to $4.31-1/4 a bushel after rising to $4.36-1/4 on Tuesday, its highest point since early July.

Wheat Wv1 rose 0.2% to $5.30 a bushel after reaching $5.35 on Tuesday, its highest since mid-September.

All three contracts have been under pressure in recent months from ample global supply and the refusal by China, the world's biggest soybean importer, to buy from the United States.

U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet in South Korea on Thursday.

Trump said on Monday that a trade deal should be agreed and Treasury Secretary Scott Bessent said China would make "substantial" soybean purchases under the proposed framework.

Analysts said farmers were selling soybeans and corn to lock in the higher prices, which would likely fall again if no deal or a smaller than expected deal is done.

China may need between 5 million and 10 million metric tons of soybeans to fill a supply gap before it begins to receive new-crop Brazilian beans next year, said StoneX analyst Arlan Suderman.

If this quantity were bought from the United States, "that would certainly help the U.S. balance sheet, but it wouldn't be enough to justify rationing demand with higher prices," he wrote in a note to clients.

"Larger shipments than that are needed to provide longer term strength to soybean demand."