GRAINS-Soybeans touch 15-month high on Chinese demand hopes

By Naveen Thukral

SINGAPORE, Nov 3 (Reuters) - Chicago soybean futures gained almost 1% on Monday, with prices climbing to a 15-month high as China's return to the U.S. market continued to buoy the market.

Wheat hit a three month high, while corn edged higher, tracking gains in soybeans, although plentiful global grain supplies are likely to limit the upside in prices.

"The market is expecting China to cut tariffs on U.S. soybeans and buy large volumes," a Singapore-based oilseed trader said.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 added 1% to $11.26-1/4 a bushel, as of 0256 GMT, the highest since July 2024. Wheat Wv1 rose 0.9% to $5.38-3/4 a bushel, the highest since late July and corn Cv1 added 0.5% to $4.33-3/4 a bushel.

U.S. officials last week said China, the world's biggest soybean importer, would buy tens of millions of tons of U.S. crops in the next few years as part of a trade deal, triggering a rally in prices.

China previously shunned U.S. soybeans due to its trade conflict with Washington and bought from South America instead.

Even though the commitment falls short of China's usual purchase volumes of U.S. soybeans in recent years, it is still a positive sign compared with the complete absence of Chinese buying from this year's harvest.

China's state-owned COFCO has bought three U.S. soybean cargoes, the country's first purchases from this year's U.S. harvest.

The White House on Saturday released details about the agreement that U.S. President Donald Trump reached this week with Chinese President Xi Jinping to de-escalate their countries' trade war, including U.S. tariff reductions.

The market is now awaiting further announcements from Chinese authorities on potential reductions in import tariffs on U.S. agricultural products.