GRAINS-Chicago grains extend fall; soybeans drop below $10

By Heather Schlitz

Oct 1 (Reuters) - Chicago corn and wheat futures extended losses on Wednesday to new multi-week lows after U.S. grains data underscored ample supply, with soybeans dropping below the psychological $10 threshold after U.S. lawmakers said China is unlikely to make purchases of U.S. soybeans in the near future.

The most-active soybean contract on the Chicago Board of Trade Sv1 was last down 2-1/2 cents to $9.99-1/4 a bushel as of 10:00 a.m. CT (1500 GMT), after slipping below the $10 mark for the first time in seven weeks.

CBOT corn Cv1 was down 3-1/4 cents to $4.12-1/4 a bushel, after reaching its weakest level since August 29. CBOT wheat Wv1 was down 3-3/4 cents to $5.04-1/4 a bushel, after reaching its lowest since August 14, when the benchmark set a five-year low.

The U.S. Department of Agriculture's widely tracked quarterly U.S. grain stocks estimates released on Tuesday weighed on prices by showing higher corn and wheat inventories than anticipated on average by analysts.

"What's going on is a bearish hangover from yesterday's stocks report, especially for wheat and corn," said Randy Place, analyst at Hightower Report.

Following a briefing with David Perdue, the U.S. ambassador to China , senators said there was little hope for China to buy soybeans in the near term.

Soybean prices have been dampened in the past week by concern over China shunning U.S. supplies in favour of imports from South America, just as the U.S. new crop is being harvested.

China booked a large volume of Argentine soybeans last week during a brief export tax waiver decreed by Buenos Aires, according to traders.

For wheat, a separate USDA report estimating 2025 U.S. wheat production above market expectations reinforced the focus on swelling global supply.

Grain markets may be left without further USDA data in the coming days after a U.S. government shutdown started on Wednesday, amid political deadlock over short-term funding measures.