Wires

GRAINS-Soybeans tick up on trade optimism, wheat eases for 1-month peak

Naveen Thukral

* Soybeans rebound from two-month low on U.S-China trade comments

* Wheat eases after short-covering rally to one-month high

(Recasts to lead with soybeans, adds quote in paragraph 5) SINGAPORE, Nov 26 (Reuters) - Chicago soybeans futures edged higher on Tuesday as the market took a breather after four sessions of losses amid optimism over trade talks between Washington and Beijing. Wheat slid, giving up some of the previous session's gains that drove the market to its highest in more than a month on potentially tighter world supplies. The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.1% at $8.93-3/4 a bushel, as of 0350 GMT, while corn gave up 0.1% to $3.70 a bushel. Wheat lost 0.3% to $5.31-1/2 a bushel, after hitting its highest since Oct. 21 at $5.34-3/4 a bushel on Monday. "There is some optimism on the trade front but it is hard to make a prediction where that might end up. We will have to wait and see what happens," said Phin Ziebell, agribusiness economist at National Australia Bank. "We are a bit sceptical about the rally in wheat prices as the global market is not in a situation of a supply constraint." China and the United States are "moving closer to agreeing" on a "phase one" trade deal, the Global Times, a tabloid run by the ruling Communist Party's official People's Daily, reported on Sunday. But the report noted that Washington and Beijing had not agreed on specifics or size of rollbacks of tariffs on Chinese goods. Beijing's insistence that Washington roll back the Trump administration's tariffs has been a major sticking point. Chinese buyers scooped up at least 20 cargoes of Brazilian soybeans last week as uncertainty over a trade deal with the United States sent them rushing to lock in supplies, traders said on Monday. In the wheat market, there has been support in recent days on a mix of fund-driven short-covering and supportive fundamentals, including rising cash values for U.S. and Russian supplies, wet weather in Europe and fears of a decline in U.S. acreage. The slow pace of the U.S. corn and soybean harvest this autumn may have limited the number of winter wheat acres planted for harvest in 2020. Analysts also noted weather issues, including dry conditions in Russia and excessive moisture elsewhere. After the CBOT closed on Monday, the U.S. Department of Agriculture rated 52% of the U.S. winter wheat crop in good to excellent condition, unchanged from a week earlier. Analysts surveyed by Reuters on average had expected a decline of 1 percentage point. Commodity funds were net buyers of CBOT corn and wheat contracts on Monday and net sellers of soyoil, soybean and soymeal futures, traders said.

Grains prices at 0350 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 531.50 -1.50 -0.28% +3.81% 517.20 67CBOT corn 370.00 -0.50 -0.13% +0.41% 380.96 40CBOT soy 893.75 1.25 +0.14% -0.80% 928.73 30CBOT rice 12.20 $0.01 +0.04% -0.37% $12.03 71WTI crude 57.96 -$0.05 -0.09% -1.06% $56.02

Currencies

Euro/dlr $1.101 -$0.001 -0.07% -0.39%USD/AUD 0.6781 0.000 -0.07% -0.04%

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

(Reporting by Naveen Thukral; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)