GRAINS-Soybeans hover near four-month low on Midwest weather, tepid China demand

- Chicago soybean futures eased on Tuesday, hovering near a four-month low as favourable weather across the U.S. Midwest and the absence of fresh Chinese purchases weighed on the market.

Wheat also edged lower on ample supplies and harvest pressure, while corn climbed on strong export demand.


FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.07% at $11.15 a bushel, as of 0100 GMT, while corn Cv1 added 0.24% to $4.19-3/4 a bushel. Wheat Wv1 fell 0.21% to $5.82 a bushel.

* Traders continue to monitor for signs of renewed Chinese purchases of U.S. soybeans and corn, which have yet to materialise despite the announcement in May that China would buy $17 billion worth of U.S. farm products a year on top of the 25 million tons of soybeans already committed.

* Beneficial rains and warmer temperatures across the Midwest were expected to support U.S. crop development.

* In its weekly crop progress report, the U.S. Department of Agriculture (USDA) rated 67% of the U.S. corn crop in good-to-excellent condition, unchanged from a week earlier. Soybean ratings fell 2 percentage points to 65% good-to-excellent.

* The USDA pegged 52% of the spring wheat crop as good-to-excellent, up from 47% last week. But winter wheat ratings declined, with 25% of the crop seen as good-to-excellent, down 1 percentage point from last week and the lowest for this time of year in USDA records dating to 1986.

* Traders are adjusting positions ahead of the USDA's monthly supply-and-demand report due on Thursday.

* Seasonal pressure from the Northern Hemisphere winter wheat harvest also weighed on prices.

* Strong export demand underpinned corn futures. The USDA said weekly U.S. corn export inspections totalled 1.91 million metric tons, exceeding analysts' estimates of 1.2 million to 1.9 million tons. USDA/I

* Commodity funds were net buyers of CBOT corn and wheat futures, traders said on Monday. CBOT/FUNDS


DATA/EVENTS (GMT)

0600 Germany Industrial Output MM April

0600 Germany Industrial Production YY SA April

1230 US Industrial Trade $ April

1400 US Existing Hom Sales May

: : China Exports, Imports YY May

: : China Trade Balance USD May