GRAINS-Wheat inches higher as rock-bottom prices trigger some demand

CANBERRA, Oct 15 (Reuters) - Chicago wheat futures inched higher on Wednesday as rock-bottom prices triggered some demand, but abundant global supply held the contract near the previous day's five-year lows.

Corn and soybean futures were little changed as the ongoing harvest in the United States poured new supply into the market.

An escalation in trade tensions between Washington and Beijing in recent days continues to weigh on the markets by clouding hopes that China will resume purchases of U.S. crops.

U.S. President Donald Trump on Tuesday called a Chinese boycott of U.S. soybeans "an Economically Hostile Act" that could lead him to terminate some trade ties with China.

The U.S. dollar also weakened on Wednesday, which helps U.S. prices by making commodities cheaper for buyers holding other currencies. .DXY USD/

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.1% at $5.00-1/2 a bushel at 0552 GMT, with corn Cv1 falling 0.1% to $4.12-3/4 a bushel and soybeans Sv1 rising 0.1% to $10.07 a bushel.

CBOT prices of all three crops have bumbled along for the last year or two near their lowest levels since 2020 after plentiful supply unwound the rapid gains of 2021 and 2022.

Wheat slipped to a five-year low of $4.92-1/4 and corn to a seven-week low of $4.09-1/4 on Tuesday.

"There was hope there would be a trade deal with China and they would start buying up U.S. wheat and soybeans," said Commonwealth Bank analyst Dennis Voznesenski. "Now, because of the escalation, it looks less likely."

However, China's refusal to buy from the United States was weakening the bellwether status of U.S. prices, he said.

"CBOT pricing is becoming more U.S.-centric. Just because they go down doesn't mean other markets do."

Low U.S. wheat prices have however pushed U.S. exports well ahead of last season's pace, and funds that have been net sellers of wheat through most of October switched to net buyers on Tuesday.

An ongoing U.S. government shutdown continues to halt the release of crucial data on exports, demand and harvest progress, discouraging traders from making big moves in the market.