GRAINS-Soybeans pause after rally, corn and wheat slip back near contract lows

PARIS/CANBERRA, Aug 14 (Reuters) - Chicago soybean futures edged down on Thursday, consolidating after a six-week high fuelled by a lower-than-expected U.S. government harvest forecast, while wheat and corn fell back towards contract lows as supply pressure persisted.

The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.6% at $10.38-1/4 a bushel at 1206 GMT, after earlier touching its highest since July 3 at $10.49-1/4.

Soybeans rallied on the back of a surprise cut on Tuesday to the U.S. Department of Agriculture's estimate of this year's U.S. soybean area, which led the agency to trim its production outlook.

However, a lack of Chinese demand for U.S. beans, as Beijing and Washington pursue uncertain trade negotiations, has tempered export sentiment.

U.S. soybean exporters risk missing out on billions of dollars worth of sales to China as trade talks drag on, according to traders.

If China does not start buying, CBOT soybeans are likely to give back their gains, said Sean Hickey, an analyst at Bendigo Bank Agribusiness in Australia.

"Chinese demand is going to be the key direction setter," he said.

Grain markets will get an update on overseas demand in weekly U.S. export sales figures later on Thursday.

Corn prices were dented by the USDA's bigger-than-expected U.S. corn crop outlook, supported by a record yield and a huge shift in acreage from soybeans to corn.

"Market participants are gradually digesting the new U.S. production estimates," Argus analysts said in a note.

"Many traders are questioning the optimistic yield projections and anticipating possible revisions as results from upcoming crop tours emerge."

CBOT corn Cv1 was down 1.1% at $3.93 a bushel, near contract lows set on Tuesday following the USDA's crop forecasts.

Adding to supply pressure, Brazil is wrapping up a bumper harvest, while Argentine farmers plan to increase corn planting for the 2025/26 season, the Rosario grains exchange said.

CBOT wheat Wv1 was down 0.8% at $5.03-1/4 a bushel, close to a five-year low of $5.02-1/4 struck on Wednesday when individual delivery months also set contract lows.

Advancing Northern Hemisphere wheat harvests and rising corn production forecasts were maintaining supply pressure, traders said.