GRAINS-Soybeans firm as Chinese demand assessed, wheat down

By Naveen Thukral and Michael Hogan

SINGAPORE/HAMBURG, Nov 7 (Reuters) - Chicago soybean prices firmed on Friday in bargain-buying after sharp falls on Thursday, as traders assessed prospects for more U.S. sales to China after the trade war truce between the two countries.

Wheat fell on the smaller-than-hoped recent U.S. sales to China, with focus returning to large global supplies.

Corn was little changed but facing headwinds from larger supplies as the U.S. harvest approaches completion.

“There is a wide range of market estimates of recent Chinese purchases of wheat and soybeans but the initial volumes reported were disappointing,” one German trader said. “However we are at the beginning of the new phase in the U.S./China trade dispute in which China apparently has committed to buy more U.S. soybeans and grains. Hopes remain (that) more Chinese buying will occur but more official details are needed.”

Chicago Board of Trade most-active soybeans Sv1 rose 0.4% to $11.12-1/2 a bushel at 1216 GMT. Wheat Wv1 fell 0.4% to $5.33 a bushel, corn Cv1 eased 0.06% to $4.28-1/2 a bushel.

China started modest purchases of U.S. farm products after the two countries agreed a trade war truce, but traders still await more significant soybean buying after the White House said Beijing pledged to buy 12 million tons of U.S. beans by the end of 2025.

China will restore three U.S. firms' eligibility to export soybeans to China. But details were lacking from a soybean procurement signing ceremony on Thursday.

China recently marked record-high soybean imports from South America, especially Brazil, amid the trade war with the U.S.

For wheat, Reuters reported China has booked just two U.S. cargoes , suggesting a smaller volume than speculation about several hundred thousand tons.

Wheat prices face headwinds from accelerating exports from Russia and competition from new harvests starting in southern hemisphere exporters Argentina and Australia.