GRAINS-Soybeans end higher as traders weigh China demand; wheat rises

By Julie Ingwersen

CHICAGO, Feb 11 (Reuters) - Chicago soybean futures closed higher on Wednesday, rallying from early declines on technical buying and continued hopes of stronger Chinese demand for U.S. supplies, analysts said.

Wheat jumped 1.7% on what appeared to be short-covering, while corn futures ended mixed, with the benchmark March contract drifting lower.

Chicago Board of Trade March soybean futures SH26 settled up 1-1/2 cents at $11.24 per bushel after reaching $11.28-1/4, the contract's highest since February 6.

CBOT March wheat WH26 ended up 9 cents at $5.37-1/4 a bushel while March corn CH26 settled down 1-1/4 cents at $4.27-1/2 a bushel.

Soybeans turned higher as traders gauged the likelihood of top global soy buyer China booking more U.S. supplies of the oilseed.

U.S. President Donald Trump said last week that China had increased its target for U.S. soybean purchases, and the U.S. Department of Agriculture in a monthly world crop report on Tuesday said, "China is reported to be considering buying more U.S. soybeans."

Brazil, the world's biggest soy producer and exporter, has begun harvesting a record-large soybean crop that is expected to dominate the global export market in the coming months. But the prospect of China buying additional U.S. soy cargoes under a trade truce has buoyed the futures market.

"The big unknown with China continues to be the big factor. We are finding that futures are just not able to set back very much in this environment," said Terry Linn, analyst with Linn & Associates in Chicago.

Wheat climbed despite a lack of news. Managed commodity funds hold a hefty net short position in CBOT wheat futures, leaving the market vulnerable to bouts of short-covering.

Farm office FranceAgriMer reduced its forecast for French soft wheat exports outside the European Union in 2025/26 by 300,000 metric tons to 7.2 million as competition from Argentine wheat continued to weigh.

CBOT corn futures closed narrowly mixed, with the most-active March contract weighed down by ample global grain supplies while deferred contracts inched higher.

Futures showed little response to confirmation by the USDA of private sales of 230,560 metric tons of U.S. corn to unknown destinations.

Market players await the USDA's weekly export sales report on Thursday.