GRAINS-Soybeans rebound from 2-week low on U.S.-China trade progress

Colin Packham

* Soybeans hit Oct. 10 low of $9.19-1/2 a bushel on Friday

* U.S. and China expected to seal limited trade agreement

* Wheat falls 0.8%, corn slips 0.3%

SYDNEY, Oct 28 (Reuters) - U.S. soybean futures edged higher on Monday, rebounding from a two-week low touched in the previous session, as market sentiment was buoyed by signs of a thawing in the trade war between Washington and Beijing. Corn edged lower, while wheat fell more than 0.5%. The most active soybean futures on the Chicago Board Of Trade were up 0.1% at $9.21-1/2 a bushel, as of 0326 GMT, having closed down 1.4% on Friday when prices hit an Oct. 10 low of $9.19-1/2 a bushel. "The market has been buoyed by the prospects of a first stage U.S.-China trade deal," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. "The first-stage deal will be to the benefit of U.S. beans." U.S. and Chinese officials are "close to finalising" some parts of a trade agreement after high-level telephone discussions on Friday, the U.S. Trade Representative's office and China's Commerce Ministry said, with talks to continue.

An outlook for favourable weather, however, checked gains with forecasts calling for dry weather across key producing regions that will allow U.S. farmers to rapidly advance harvesting. The most active corn futures were down 0.3% at $3.85-3/4 a bushel, having closed unchanged in the previous session. The most active wheat futures were down 0.8% at $5.13-3/4 a bushel, having closed up 0.3% on Friday. Analysts also noted uncertainty surrounding any potential change to Argentina's export tax policy following the election of leftist Alberto Fernández as the country's next president.

Argentina is a major world supplier of soybeans, corn and wheat, as well as the No.1 exporter of soymeal livestock feed, fuelling Asia's shift in diet from rice toward animal protein.

Grains prices at 0326 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 513.75 -4.00 -0.77% -0.44% 500.39 49CBOT corn 385.75 -1.00 -0.26% -0.26% 384.55 41CBOT soy 921.50 1.25 +0.14% -1.26% 914.53 40CBOT rice 12.04 -$0.01 -0.08% +0.50% $12.19 42WTI crude 56.53 -$0.13 -0.23% +0.53% $55.02 69


Euro/dlr $1.108 $0.000 +0.00% -0.23%USD/AUD 0.6812 -0.001 -0.15% -0.07%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Colin Packham; Editing by Shounak Dasgupta)