GRAINS-Chicago grains edge down as US-China worries persist

PARIS/CANBERRA, Oct 15 (Reuters) - Chicago wheat, corn and soybean futures edged down on Wednesday, pressured by ample global supply and concerns about escalation in a U.S.-China trade battle that has hurt U.S. soy exports.

Prices earlier bounced from lows on Tuesday - when wheat hit its weakest level in five years, corn set a near seven-week low and soybeans a two-week low - before dropping.

Comments by U.S. President Donald Trump, who 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, kept the focus on their protracted trade battle.

Trump singled out cooking oil imports from China, though traders and analysts said they would have little impact as such shipments from China had plummeted over the past year.

"Each day brings new threats of retaliation from both sides, undermining confidence in global growth and, more directly, in some purchases of U.S. grains," Argus analysts said.

China has yet to purchase any soybeans from the new U.S. crop that is currently being harvested, stepping up its imports from South America.

Dry weather was also helping U.S. farmers advance in harvesting corn and soybean crops, adding to supply pressure after bumper South American production this year.

Forecasts of record world wheat production, bolstered by large crops in Argentina and Australia expected in the coming weeks, and signs of accelerating Russian exports were hanging over the wheat market.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.5% at $4.98 a bushel at 1114 GMT, to hold near Tuesday's five-year low of $4.92-1/4.

CBOT corn Cv1 eased 0.2% to $4.12 a bushel and soybeans Sv1 ticked down 0.2% to $10.04-3/4 a bushel.

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.