Soybeans gain on China demand, corn edges lower

CHICAGO: Chicago soybeans gained on Wednesday, supported by solid demand from the world's biggest importer, China, while corn ticked lower on good crop conditions.

Wheat turned higher after falling for three consecutive sessions, but advances remained capped by a progressing winter wheat harvest in the U.S. southern Plains. Traders were also adjusting positions ahead of the release of a monthly U.S. supply and demand report due on Thursday.

The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 3-1/2 cents to $8.66-3/4 a bushel by 12:03 p.m. (1703 GMT).

Corn slipped 3/4 cent to $3.26-3/4 a bushel, while wheat gained 1 cents to $5.05-1/2 a bushel.

China has made a string of purchases of U.S. soybeans recently. Traders reported the latest on Tuesday, when they said Chinese state-owned Sinograin bought at least 120,000 tonnes of U.S. soybeans for shipment in December from U.S. Pacific Northwest ports.

"U.S. beans at the Gulf are cheaper than Brazil soybeans, and Brazil soybeans are getting more sold out as we go," said Don Roose, president of U.S. Commodities. "We have the market window, as we get deeper into the summer."

Meanwhile, the corn market continued to sag after a U.S. crop progress report on Monday showed improving crop conditions.

Ethanol production increased by 72,000 barrels per day last week, the U.S. Energy Information Energy reported on Wednesday, while stocks of the corn-based fuel dropped 674,000 billion barrels.

"The fact that we continue to increase, and stocks continue to decrease is supportive," said Jim Gerlach, president of A/C trading. "It's just not happening fast enough to live up to USDA's annual pace they're projecting."

Wheat was supported by continued weather concerns in Russia, traders said.

Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), said it bought 120,000 tonnes of Russian wheat in an international purchase tender.