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GRAINS-Soybeans slip as Huawei arrest dampens U.S.-China trade hopes

* Arrest of Huawei exec adds doubt over U.S.-China detente * U.S. soybean market awaits signs of renewed Chinese buying * Wheat stays weak on demand concerns, corn edges down (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Dec 6 (Reuters) - Chicago soybeans fell on Thursday, after four days of gains, as the arrest of a senior executive at Chinese technology group Huawei added to doubts about a U.S.-China trade truce that has yet to see a resumption of U.S. soybean sales to China. Corn, which could also benefit from renewed Chinese demand, ticked lower too, while wheat fell for a second day amid uncertainty about export demand. World stock markets fell sharply as the arrest by Canadian authorities of Huawei's chief financial officer, Meng Wanzhouof, who is also the daughter of the company's founder, for extradition to the United States stoked fears of renewed tensions between Washington and Beijing. The arrest further dampened hopes of a revival in commodity flows between the two countries after last weekend's 90-day truce period agreed by U.S. President Donald Trump and Chinese counterpart Xi Jinping. As the most valuable U.S. agricultural export to China, soybeans have been at the heart of the trade dispute. "China hasn't started buying U.S. soybeans," said one Singapore-based trader, adding: "We have pressure from other markets which have dropped after Canada arrested a senior executive of Huawei." Forecasts of a record soybean harvest in Brazil provided additional headwinds to Chicago futures as bumper supplies from the South American agricultural powerhouse could reduce China's need to buy from a massive U.S. harvest. "There is no doubt in any case that U.S. end-of-season balance sheets will be heavy on this product," consultancy Agritel said of soybeans. The most-active soybean contract on the Chicago Board of Trade was down 1 percent at $9.04 a bushel by 1335 GMT, moving away from a near six-month high struck on Monday. CBOT wheat shed 0.6 percent to $5.15 a bushel and corn was down 0.4 percent at $3.882-3/4 a bushel. The wheat market is being weighed down by demand concerns, including from top importer Egypt. Traders have reported delays in the issuing of letters of credit for 16 previously purchased cargoes, including one of U.S. wheat, although Egypt's supply ministry said the payment guarantees were being issued. However, no U.S. wheat was offered in a new import tender being held by Egyptian buying agency GASC on Thursday. The uncertainty over Egypt has added to doubts over whether U.S. wheat exports will accelerate as supplies of top wheat exporter Russia decline. Prices at 1335 GMT Last Change Pct End Ytd Pct Move 2017 Move CBOT wheat 515.00 -3.00 -0.58 427.00 20.61 CBOT corn 382.75 -1.50 -0.39 350.75 9.12 CBOT soy 904.00 -9.50 -1.04 961.75 -6.00 Paris wheat Dec 199.00 0.00 0.00 170.00 17.06 Paris maize Jan 174.00 -0.50 -0.29 167.75 3.73 Paris rape Feb 369.50 -2.75 -0.74 355.75 3.87 WTI crude oil 51.43 -1.46 -2.76 60.42 -14.88 Euro/dlr 1.14 0.00 0.13 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sunil Nair and Susan Fenton)

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