CBOT soybeans finish up on lower-than-expected US supply outlook

CHICAGO, May 12 (Reuters) - Chicago Board of Trade soybean futures finished higher on Tuesday after the U.S. Department of Agriculture released lower-than-expected estimates of the nation's 2026/27 inventories and harvest.

• U.S. soybean stocks were forecast to shrink to 310 million bushels by the end of the 2026/27 marketing year, from 340 million at the end of the current season on August 31, USDA said in a report. Analysts expected 364 million bushels, according to a Reuters poll.

• USDA pegged the 2026 U.S. soybean harvest at 4.435 billion bushels in the report, up from 4.262 billion bushels last year. That was below the average trade estimate of 4.445 billion.

• A sharp rally in wheat prices helped lift corn and soy futures.

• Traders were waiting to see the results of U.S. President Donald Trump's high-stakes summit with Chinese leader Xi Jinping this week.

• China and the U.S. may reach a farm deal that expands Beijing's purchases of grains and meat, but market-watchers said they did not expect major new soybean purchases beyond what was agreed upon in a deal last October.

• CBOT July soybeans SN26 jumped 13-3/4 cents to $12.26-3/4 per bushel and set the highest price in almost two months.

• CBOT July soyoil BON26 advanced 1.62 cents to close at 75.36 cents per pound, and July soymeal SMN26 increased $3.60 to $328.40 per short ton.

Oil prices settled higher for the third consecutive session, helping to underpin grain markets.