GRAINS-Soybeans near six-week low as China shuns US supplies, buys Argentine crop

By Karl Plume

CHICAGO, Sept 24 (Reuters) - U.S. soybean futures eased on Wednesday on export concerns as large sales of Argentine soy to China kept attention on the top importer's lack of purchases from the U.S.

Corn followed soybeans lower, although losses were limited by early harvest reports of smaller-than-expected yields in the heart of the Midwest corn belt.

Wheat edged higher on technical support and bargain buying following the market's bounce from contract lows in the prior trading session.

"The soybeans have kind of been the downside leader with the Argentine tax situation and producers selling beans aggressively and China not buying from the U.S. There's an overhang on the bean market that seems to be pulling the corn market down," said Don Roose, president of U.S. Commodities.

Traders on Wednesday said that Chinese buyers have booked around 20 cargoes of Argentine soybeans since Argentina temporarily eliminated export taxes on soybeans, grains and byproducts earlier this week.

Argentina's export tax waiver has reinforced China's shift towards South American soybeans as it remains locked in a trade dispute with Washington.

Chicago Board of Trade November soybeans SX25 were down 2 cents at $10.10 a bushel at 11:32 a.m. CDT (1632 GMT), hovering near a six-week low set in the previous session. December corn CZ25 was down 1-3/4 cents at $4.24-1/2 a bushel.

Soybean and corn futures face seasonal supply pressure from the onset of the U.S. harvest, though doubts over yields have helped underpin both markets.

"I think it all depends on, as the harvest expands, what's going to be the real yield? No doubt it's under what the government has estimated, but it's just a matter of how much," Roose said.

Wheat was moving away from contract lows, helped by a wave of demand from importers. GRA/TEND

CBOT December wheat WZ25 gained 1-3/4 cents to $5.22-1/4 a bushel.