GRAINS-Wheat holds just above five-year lows amid speculator selling

CANBERRA, Aug 6 (Reuters) - Chicago wheat futures steadied just above five-year lows on Wednesday, after plunging around 7% in the last two weeks as seasonal supply pressure from Northern Hemisphere harvests and falling corn prices triggered selling by speculators.

Corn inched lower and soybean futures rose, helped by larger-than-expected weekly U.S. export inspections, but both were near multi-month lows amid expectations of large U.S. production and well-supplied global markets.

The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.1% at $5.08-3/4 a bushel at 0337 GMT. Prices fell to a five-year low of $5.06-1/4 in May.

Northern Hemisphere production is still pouring onto the market.

"Quality can be a problem in some areas, but quantity is more than enough," said Rabobank analyst Vitor Pistoia.

Recent rainfall has also boosted the outlook in late harvesters Canada, Australia, and Argentina.

"We don't have much that can stop us from going to $5," Pistoia said.

"If things are dry during Northern Hemisphere planting in October and November, that could flip the situation. But we don't know yet whether that will happen."

Speculators are betting on further price falls for CBOT wheat, corn, and soybeans. Funds have been net sellers of Chicago wheat for the last six trading sessions, traders say.

The U.S. Department of Agriculture (USDA) on Monday issued condition ratings for U.S. corn and soy crops that were the highest in years.

Brokers StoneX on Monday said the United States could produce 16.323 billion bushels of corn this year, above the USDA's latest estimate.

U.S. corn will flood the market, raising global inventories and - because corn competes with wheat in the animal feed market - weighing on wheat, Pistoia said.

"That is my major concern for the wheat market over the next 12-18 months," he said.

CBOT corn Cv1 was down 0.1% at $4.01-1/2 a bushel and soybeans Sv1 were up 0.2% at $9.93 a bushel.