GRAINS-Soybeans and wheat ease from highs on limited Chinese demand

By Gus Trompiz and Naveen Thukral

LONDON/SINGAPORE Nov 6 (Reuters) - Chicago soybean and wheat futures fell on Thursday, retreating from multi-month highs as signs of only limited Chinese purchases from the United States tempered optimism about fresh demand following a trade truce between Washington and Beijing.

Corn eased, with the final stages of the U.S. harvest and favourable planting conditions in South America maintaining supply pressure.

"Grains are down in early trading on lack of supportive news," Andrey Sizov, head of consultancy Sovecon, said.

The market was still awaiting confirmation of soybean purchases while a Reuters report that China has booked two cargoes of U.S. wheat suggested a smaller volume than speculation of several hundred thousand tons, he added.

COMMITMENT TO BUY US SOYBEANS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.9% at $11.24-1/2 a bushel, as of 1251 GMT, moving back from Wednesday's 16-month peak of $11.37.

Caution over soybean demand was reinforced by a lack of any details from a soybean procurement signing ceremony on Thursday held in Shanghai.

U.S. officials have said the truce agreement includes a Chinese commitment to buy 12 million metric tons over November and December.

"Chinese buyers don't seem to be keen to buy U.S. soybeans as Brazilian prices are more competitive," said one oilseed trader.

Talk of Chinese demand has helped wheat pull away from a five-year low in October. But the market still faced pressure from accelerating exports from Russia, and competition from southern hemisphere exporters Argentina and Australia that are starting their harvests.

The Russian government is considering a near doubling of its grain export quota for the second half of the marketing season, according to a draft document published by the Russian Grain Union lobby group on Wednesday.

CBOT wheat Wv1 gave up 1.4% to $5.47-1/4 a bushel, retreating from a near four-month high of $5.55 on Wednesday.

CBOT corn Cv1 eased 0.5% to $4.33-1/4 a bushel.

The suspension of the U.S. Department of Agriculture's flash export sales reports, which usually track large export volumes, amid an ongoing government shutdown has added to uncertainty over any Chinese purchases.

Grain markets are starting to shift their attention to the USDA's November supply and demand report, which the agency plans to publish next week after skipping its October report due to the shutdown.