Soybeans sit below 17-month highs as traders mull Chinese demand

CANBERRA, Nov 24 (Reuters) - Chicago soybean futures rose slightly on Monday and were sitting a little below last week's 17-month high as traders pondered whether China would buy enough U.S. beans to push prices higher.

Wheat and corn futures slipped for a fourth straight session amid abundant supply.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.2% at $11.27 a bushel at 0633 GMT.

The contract reached $11.69-1/2 last Tuesday, its highest since June 2024, as China ramped up purchases from the United States.

Prices are still up around 12% since mid-October.

China bought 1.584 million tons of U.S. soybeans last week, according to the U.S. Department of Agriculture (USDA), the biggest weekly total since November 2023.

Traders and analysts say total U.S. sales to China may be closer to 2 million to 3 million tons since China-U.S. trade talks last month ended a Chinese boycott.

But this volume has been priced in already, traders say, and with higher prices triggering selling by farmers, China already flush with beans, and Brazil offering cheaper supplies, many in the market doubt that China will continue buying from the U.S. at a fast enough pace to drive a new rally.

"The market is over-reacting," said Vitor Pistoia, an analyst at Rabobank in Sydney, adding that prices should come down because global supply was so plentiful.

In other crops, CBOT corn Cv1 was down 0.1% at $4.37 a bushel and wheat Wv1 fell 0.1% to $5.39-1/4 a bushel.

Both contracts reached multi-month highs last week.

Large speculators cut their net short position in CBOT soybeans in the week to Oct. 7, regulatory data showed. They also trimmed their net short in CBOT wheat and increased their net short in corn.