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GRAINS-Soybeans, corn and wheat down on U.S.-China trade tension
* China-U.S. trade dispute again weakens markets
* Soybeans around Monday's lows
* Wheat down on good U.S. crop picture and export outlook (Recasts with European trade, adds quotes, changes dateline)
By Michael Hogan
HAMBURG, May 7 (Reuters) - Chicago soybeans, corn and wheat fell on Tuesday, again pressured by fears that China and the United States are a long way from ending their trade war.
The most active soybean contract on the Chicago Board of Trade fell 0.2 percent to $8.28-1/4 a bushel by 1058 GMT, having hit its lowest in almost eight months on Monday at $8.16-3/4 a bushel.
Corn fell 0.2 percent to $3.63-1/2 a bushel while wheat dropped 1.2 percent to $4.31-3/4.
"It looks like a trade agreement that will re-open U.S. soybean and grain exports to China is not likely in the near future," said Matt Ammermann, commodity risk manager at INTL FCStone.
Grains and soybeans markets had slumped on Monday after U.S. President Donald Trump said that the United States will impose additional tariffs on Chinese goods. U.S. officials said China backtracked on substantial commitments it made during trade talks with the United States.
"The extra tariffs increase the tension in the talks, which is disappointing to markets but naturally the tariffs could also put more pressure on China to reach an agreement,” Ammermann said.
"Chinese officials are due to visit the U.S. for trade talks this week so hopes of progress remain. There are also fears of a reduction in Chinese soybean purchases in the United States.”
Brokerage Allendale added: "Grain market traders continue to grapple with record soybean stocks, rising corn stocks, an excellent wheat crop and strong export competition among major world suppliers in all three products."
The U.S. Department of Agriculture (USDA) on Monday said that 23 percent of the U.S. corn crop had been planted, below the five-year average of 46 percent and expectations for 25 percent.
Some 64 percent of U.S. winter wheat was in good-to-excellent condition, up from 34 percent last year.
“Wheat is also being weakened as the U.S. is not looking competitively priced in export markets," INTL FCStone's Ammermann said. "The USDA crop progress report also showed a positive picture of U.S. winter wheat condition.
"Some 50 percent of U.S. corn needs to be planted by mid-May otherwise there could be a threat to yields. Mid-May is next week and we are still a long way from 50 percent of U.S. corn planted.” (Reporting by Michael Hogan Additional reporting by Naveen Thukral Editing by David Goodman)
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