Soybeans stay firm at 2-year high on Chinese demand

PARIS/SINGAPORE: Chicago soybean prices rose on Thursday to a fresh two-year peak as traders reported further sales to China, the world's largest importer of the oilseed.

Corn edged down as the market weighed a backdrop of brisk Chinese demand and prospects for the upcoming US harvest.

Chinese state-owned firms bought at least eight bulk shipments of US soybeans, or at least 480,000 tonnes, for shipment in December and January, two traders familiar with the deals told Reuters on Thursday.

Grain markets are watching to see if these reported sales are confirmed on Thursday by the US Department of Agriculture (USDA) in its daily export reporting system.

Traders are also awaiting the USDA's weekly export sales report for more details on recent overseas demand.

"Soybean futures remain strong thanks to healthy demand from China and also concern about a possible downgrade to US yields in the next USDA report," a European trader said.

Drought in part of the Midwest grain belt, along with the impact of a mid-August wind storm, have led traders and analysts to scale back previous projections calling for massive autumn corn and soybean harvests.

The USDA will update its US harvest forecasts in a monthly supply and demand report on Sept. 11.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4% at $9.65-1/2 a bushel by 1206 GMT, on track for a ninth straight session of gains.

It earlier touched its highest since June 2018 at $9.68-1/4, slightly above a previous two-year peak on Monday.

CBOT corn was down 0.3% at $3.57-3/4 a bushel and wheat was up a quarter of a cent to $5.58-1/2.

Wheat traders were awaiting the outcome of a latest import tender by Egypt, which has been heavily buying Russian wheat in recent weeks.

Wheat markets are also continuing to weigh contrasting harvest prospects in major exporting countries as well as rising demand from China.