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Image used for illustrative purpose. A close-up shows soybean plants on a farm on the outskirts of San Jose April 27, 2011.
SINGAPORE - Chicago soybean futures eased on Monday after climbing to their highest in more than seven months in the last session, but were still supported by Chinese purchases of U.S. beans in the wake of Sino-U.S. trade talks.
Wheat edged down, although the market was buoyed by expectations of higher demand for U.S. supplies.
The most-active soybean contract on the Chicago Board of Trade had fallen 0.1 percent to $9.16-3/4 bushel by 0309 GMT, after rising to its highest since mid-June at $9.31 a bushel on Friday.
This comes a day after Chinese Vice Premier Liu He, following high-level bilateral trade talks in Washington, said China would buy an additional 5 million tonnes of U.S. soybeans.
Chinese state-owned firms bought at least 1 million tonnes of U.S. soybeans on Friday for shipment, three traders with knowledge of the deals said. One trader with direct knowledge of the deals said total purchases were around 2.2 million tonnes.
Brokerage INTL FCStone lowered its estimate of Brazil's soybean crop to 112.2 million tonnes, down 4 million tonnes from last month, citing hot and dry weather.
"U.S. spot soybean prices finished last week at a small discount to Brazil spot soybean prices," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
"The market's worries about soybean crops in Mato Grosso du Sol and surrounds remain."
Russia's government has told Brazil it may restrict soybean imports from the country temporarily if producers do not reduce their volume of pesticide use, especially of products using glyphosate, Brazil's Agriculture Ministry said on Friday.
Wheat fell 0.2 percent to $5.23 a bushel. The market jumped 1.5 percent on Friday, the biggest one-day gain since mid-December, on expectations of strong demand for U.S. shipments.
Corn was unchanged at $3.78-1/4 bushel. (Reporting by Naveen Thukral; Editing by Joseph Radford and Subhranshu Sahu)
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