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GRAINS-Corn jumps 4%; wheat, soybeans climb on U.S.-China trade optimism

Julie Ingwersen

(Updates prices, adds quotes, changes byline; changes dateline, previous PARIS/SYDNEY) CHICAGO, Oct 11 (Reuters) - U.S. corn futures surged about 4% on Friday while wheat and soybeans also firmed, buoyed by optimism about a potential thaw in the U.S.-China trade war and worries about wintry weather threatening crops in the Midwest, analysts said. As of 12:35 p.m. CDT (1735 GMT), Chicago Board of Trade December corn was up 15 cents at $3.95-1/4 a bushel after reaching $3.97-1/2, its highest since Aug. 12. CBOT December wheat was up 15-1/2 cents at $5.08-1/2 a bushel after hitting $5.12-3/4, its highest since July 25. November soybeans were up 12 cents at $9.35-1/2 a bushel after touching $9.39-1/4, the highest on a chart of the most-active soybean contract since China imposed retaliatory tariffs on U.S. soybeans in July 2018. Commodity and equity markets rose as high-level U.S. trade talks with China entered a second day. U.S. President Donald Trump sounded an optimistic note and Beijing indicated it was open to a "partial" deal that would avoid a planned hike in tariffs on its goods this month. "It's all about China," Dan Basse, president of Chicago-based AgResource Co, said of the strength in grains. "They are all pumped up about a mini-deal that will ease tensions," Basse said. Officials, including U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He, resumed talks in Washington early on Friday. Liu is scheduled to meet Trump at the White House at 2:45 p.m. EDT (1845 GMT), according to the White House public schedule. "Good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days. I will be meeting with the Vice Premier today. All would like to see something significant happen!" Trump wrote on Twitter. Soybeans, the largest U.S. crop export to China, have been supported by purchases of U.S. soybeans by China in the run-up to the latest round of trade talks, including a 398,000-tonne sale reported by the USDA on Thursday. Grain traders also continued to monitor a winter storm that brought blizzard conditions to parts of the Dakotas. Freezing temperatures were expected to reach into Minnesota and Iowa this weekend. "This week's cold outbreak is more intense than expected and expected to claim a larger portion of this year's immature corn and soybean crops than previously believed," INTL FCStone chief commodities economist Arlan Suderman wrote in a client note.

CBOT prices as of 12:38 p.m. CDT (1738 GMT):

Net Pct Volume

Last change change

CBOT wheat WZ9 507.50 14.50 2.9 66065CBOT corn CZ9 395.25 15.00 3.9 214559CBOT soybeans SX9 935.50 12.00 1.3 139430CBOT soymeal SMZ9 310.80 3.00 1.0 40188CBOT soyoil BOZ9 29.94 0.16 0.5 36098

NOTE: CBOT December wheat and corn and November soybeans shown in cents per bushel, December soymeal in dollars per short ton and soyoil in cents per pound.

(Additional reporting by Gus Trompiz in Paris and Colin Packham in Sydney; Editing by Aditya Soni, Elaine Hardcastle and Tom Brown)