GRAINS-Soybeans set to snap seven-week rally on China demand doubts

BEIJING/PARIS, Dec 5 (Reuters) - Chicago soybean futures edged down on Friday and were set for a first weekly loss in eight amid uncertainty over the scale of Chinese demand for U.S. supplies under a bilateral trade truce.

Wheat and corn also eased, with ample global grain supply tempering support from brisk U.S. corn exports.

Grain markets were turning their attention to a U.S. Department of Agriculture supply and demand report next Tuesday, while investors were also watching for a U.S. inflation reading later on Friday to gauge prospects for an interest rate cut next week. MKTS/GLOB

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.3% at $11.16-1/2 a bushel by 1011 GMT.

The USDA on Thursday reported 1,248,500 tons of net export sales of U.S. soybeans in the week ended October 30, including 232,000 tons to China, the country's first purchases from the 2025 U.S. harvest. EXP/SOY

However, overall purchases remain well below the 12-million-metric-ton target referred to by senior U.S. officials, and U.S. Treasury Secretary Scott Bessent this week appeared to push back the deadline for the target to end-February from end-December.

"A few days before the USDA's monthly report, Chinese import potential will be closely monitored, knowing that Brazilian exports have so far largely covered the country's needs," Argus Media analysts said in a note.

In cereals, CBOT wheat Wv1 fell 0.5% to $5.37-1/2 a bushel while CBOT corn Cv1 dipped 0.3% to $4.46 a bushel.

On Thursday, Statistics Canada reported the country's total wheat production at nearly 40 million tons, surpassing market expectations.

"The big news was the StatsCan data, which placed wheat and canola both at record highs. This continues the narrative of strong global supply," said Andrew Whitelaw, an analyst at Australian consultant Episode 3.

The United Nations' Food and Agriculture Organization, meanwhile, on Friday increased its forecast of world cereal production and stocks this season to record highs.

Chicago corn nonetheless remained near a six-month peak struck at the start of the week, supported by brisk exports and concern over cold weather hampering transport of U.S. grain.