Soybeans ease after rally; wheat hits three-month high

By Naveen Thukral

Chicago soybeans fell on Tuesday, retreating from a 16-month-high hit in the previous session, while traders awaited further Chinese purchases of U.S. cargoes following last week's talks and a thaw in trade relations between the two countries.

Wheat gained more ground, hitting its highest in more than three months, while corn slid.

"There is a lot of talk of Chinese companies checking prices and looking to book U.S. soybean cargoes," said one Singapore-based oilseed trader. "We are now waiting to see those deals actually materialise."

The most-active soybean contract on the Chicago Board of Trade (CBOT) ZS1! fell 0.4% to $11.30-1/4 a bushel as of 0316 GMT, having climbed to its highest since June 2024 on Monday.

Wheat ZW1! added 0.9% to $5.48-1/4 a bushel, its highest since July, and corn ZC1! lost 0.3% to $4.33-1/4 a bushel.

Hopes for renewed Chinese demand underpinned the U.S. agricultural markets in recent sessions. However, the market is waiting to see China buy millions of tons of U.S. soybeans as announced by U.S. officials.

China shunned U.S. soybeans during the trade dispute, buying from South America instead.

On Monday, traders said Chinese soybean importers have stepped up purchases of Brazilian cargoes as South American prices eased on expectations a U.S.-China trade deal.

Brazil's soybean planting for the 2025-26 season reached 47% of the expected area as of last Thursday, up from 36% a week earlier but lagging the 54% seen last year, due to irregular rainfall, agribusiness consultancy AgRural said on Monday.

U.S. soybeans and corn harvests are winding down. The U.S. soybean harvest was 91% complete as of Sunday and the corn harvest was 83% finished, according to a Reuters poll of nine analysts. Farmers are harvesting what has been projected as the biggest U.S. corn crop in history along with a bumper soybean crop.

The wheat market was supported by reports of China's interest in buying U.S. wheat.

The U.S. government shutdown is depriving dealers of news about new U.S. export sales via the usual daily flash sales announcements from the U.S. Department of Agriculture.