GRAINS-Soybeans regain ground as Trump says meeting with Xi will be reset

By Renee Hickman

CHICAGO, March 17 (Reuters) - Chicago soybean futures climbed on Tuesday as U.S. President Donald Trump said he would reset a meeting scheduled with China's president Xi Jinping.

Trump had earlier said the meeting could be delayed, causing doubts over Chinese demand and sending prices tumbling on Monday.

Wheat ticked down as U.S. wheat faced competition from Russia and corn fell on lack of direction, according to analysts.

The most-active soybean contract Sv1 on the Chicago Board of Trade was up 4-1/4 cents at $11.59-1/2 a bushel, as of 11:18 a.m. CDT (1618 GMT). Soyoil BOv1, widely used in biofuel, climbed 1.98 cents to 65.92 cents per pound.

Soybeans fell by their 70 cent daily trading limit on Monday as news that Trump might delay a planned visit to China dampened expectations of further Chinese purchases of U.S. soybeans.

Trump told the Financial Times in an interview published on Sunday that he could delay his summit with his Chinese counterpart as he pressed Beijing to help unblock the Strait of Hormuz.

On Tuesday, Trump said he and Xi are "resetting" their meeting, and that it will instead take place in around five or six weeks.

Soybeans received additional support as crude oil rose after Iranian attacks on the UAE heightened concerns about supply disruption due to the U.S.-Israeli war with Iran.

Oil fluctuations impact grain markets because biofuel is a major outlet for soyoil and corn, and as oil influences commodity investment flows. O/R

Investor hopes were raised as Trump invited farmers and biofuels producers to an event at the White House on March 27, CBS News reported on Tuesday.

The administration's plans to issue a final rule before the end of March on biofuel blending quotas have raised expectations for additional volumes for feedstocks like soyoil, according to Dan Basse, president of AgResource Company.

"That's given the oil market a little bit of bounce in its step," he said.

CBOT wheat Wv1 eased 6-1/2 cents to $5.90-3/4 a bushel and CBOT corn Cv1 dropped 1-3/4 cents to $4.52-1/4 a bushel.

Basse said competition from cheap Russian crops drove wheat futures down on Tuesday, with additional liquidation taking place as cold weather in the U.S. plains passed.