GRAINS-Soybeans seesaw as China raises tariffs on US goods

By Renee Hickman

CHICAGO, April 9 (Reuters) - Chicago soybean futures traded both sides of unchanged on Wednesday, brushing off some earlier selling pressure after China raised its tariffs on U.S. goods to 84% from 34%.

The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 1-1/4 cents at $9.94 a bushel by 10:51 a.m. CST (1551 GMT). It earlier fell as low as $9.87-1/2 following China's announcement.

CBOT corn Cv1 was down 3/4 of a cent at $4.68-1/4 a bushel, and CBOT wheat Wv1 fell 2-1/2 cents to $5.37-1/2 a bushel.

All three CBOT contracts have been affected by a tit-for-tat tariff war that erupted last week between the United States and China, but soybeans were hit hardest, slumping to a four-month low on Monday.

China is the world's biggest soy buyer and takes in around half of U.S. soybean exports each year.

Beijing's willingness to retaliate against U.S. tariffs has led to fears of weaker demand for U.S. soybeans, said analysts.

"China's new retaliatory tariff of 84% has not pressured the bean market much today, likely due to the fact that strong demand for Brazil beans by China has raised Brazil prices and made the U.S. competitive," said Randy Place, analyst at the Hightower Report.

However, the U.S. may find it difficult to replace China as a buyer, with some analysts predicting that Chicago prices would fall further.

Also supporting Chicago soybeans - and corn - was the prospect of increased demand for U.S. biofuel feedstock, following a recommendation from an industry coalition to sharply raise federal mandates for biomass diesel blending in 2026.

Wheat gained some support from the weaker U.S. dollar and from dry weather and hot temperatures expected in the U.S. Plains this weekend, said Place.

Traders were also positioning themselves ahead of a U.S. Department of Agriculture supply and demand report due for release on Thursday, analysts said.