GRAINS-Chicago grains off highs with Fed and China in focus

PARIS/BEIJING, Sept 17 (Reuters) - Chicago corn and soybean futures edged lower on Wednesday and wheat was little changed, with the markets consolidating after multi-week highs while traders waited on an expected U.S. interest rate cut and developments in trade talks between the United States and China.

The most active corn contract Cv1 on the Chicago Board of Trade (CBOT) was down 0.3% at $4.28-1/4 a bushel by 1057 GMT, after climbing on Tuesday to its highest since July 3.

CBOT wheat Wv1 was unchanged on the day at $5.34 per bushel, after reaching its highest since July 29 earlier on Wednesday.

CBOT soybeans Sv1 were down 0.4% at $10.45-1/4 per bushel, slightly off a two-week top struck on Tuesday.

Chicago grains rallied on Tuesday, supported by a drop in the dollar before the U.S. Federal Reserve's policy decision and news that U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to speak by phone on Friday.

The dollar steadied on Wednesday before the Fed's announcement later in the day. FRX/

News of the Trump-Xi call boosted hopes for a breakthrough in a trade dispute during which China has yet to book any U.S. soybeans from the 2025 harvest, though the market remained cautious pending any agreements on soybean purchases.

"Soybean futures reversed lower ... as the U.S. harvest began without fresh purchases from top buyer China, though optimism around U.S.-China trade talks is offering some support," Saxo Bank said in a note.

Market participants are also awaiting more clarity on U.S. soybean and corn crop sizes, with some expecting the USDA to trim its national yield estimates for both crops in its mid-October report due to recent dry weather.

Despite possible cuts, U.S. corn production is still projected to be large, though brisk export demand has lent support.

Strong exports have also underpinned wheat prices, which have been recovering from contract lows, though ample global supply remains a curb on the market.