GRAINS-Soybeans stay weak on Chinese demand worries

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Aug 29 (Reuters) - Soybeans edged lower on Friday, remaining on course for a weekly decline as a lack of Chinese demand for U.S. supplies hung over the oilseed market.

Corn rose for a second consecutive session, supported by strong weekly export data, while wheat eased.

Traders were adjusting positions at the end of the month and before a long weekend in the United States, where financial markets will be closed on Monday for the Labor Day holiday.

The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.5% at $10.43-1/4 a bushel by 1103 GMT to hold near Thursday's one-week low.

Soybean prices had climbed to a two-month peak last week, buoyed by hopes that China would revert to buying U.S. crop after months of shunning the origin in a wider trade war with Washington. But no such purchases have been confirmed.

"China is continuing to buy most of its soybeans from Brazil and other South American countries," said one oilseed trader in Singapore. "This is going to put pressure on Chicago futures."

China's soybean importers are boosting purchases from Argentina and Uruguay, adding to flows from main supplier Brazil, to fill the gap left by the absence of U.S. shipments, two trade sources told Reuters.

Traders will be monitoring U.S.-Chinese talks in the coming days, with senior Chinese trade negotiator Li Chenggang expected in Washington.

Favourable prospects for the U.S. soybean and corn harvests were also curbing Chicago prices, though corn has been underpinned by brisk exports.

U.S. weekly corn export sales reported on Thursday topped 2 million metric tons for the second week in a row.

CBOT corn Cv1 added 0.4% to $4.11-1/2 a bushel and CBOT wheat Wv1 dipped by 0.1% to $5.28-1/4 a bushel.

Abundant production from Northern Hemisphere harvests and an improving outlook for crops in Southern Hemisphere exporters Argentina and Australia have weighed on wheat prices this week.

Rain in wheat-growing areas of the United States and France has also boosted planting prospects.

Falling prices in Russia amid rising harvest estimates have further pressured the market, raising expectations that shipments from the world's biggest wheat exporter will accelerate after a slow start to the season.