GRAINS-Chicago grains ease as Greenland row and global supply weigh

BEIJING/PARIS, Jan 20 (Reuters) - Chicago cereal and soybean futures edged lower on Tuesday as tensions between Washington and Europe over Greenland unsettled investors and ample global supply also hung over grain markets.

A drop in the dollar and signs of brisk international demand, however, lent some support to Chicago prices as trading resumed after a three-day holiday weekend in the United States.

The most-active soybean contract Sv1 on the Chicago Board of Trade was down 0.2% at $10.56 a bushel by 1313 GMT, pausing after gains in the three previous sessions.

CBOT wheat Wv1 fell 0.8% to $5.13-3/4 a bushel and CBOT corn Cv1 dipped 0.6% to $4.22-1/4 a bushel.

STANDOFF BETWEEN TRUMP AND EUROPE

Shares slid along with the dollar as investors fretted over a standoff between U.S. President Donald Trump and European allies that Trump has threatened with tariffs if they oppose his aim to take control of Greenland. MKTS/GLOB

"There is the fear of a trade war developing," a European futures trader said.

Expectations for a record Brazilian soybean harvest and ample global cereal supplies also curbed prices, tempering reaction to Chinese purchases over U.S. soybeans and demand from wheat importers.

China has bought about 12 million metric tons of U.S. soybeans since a bilateral trade truce in late October, fulfilling a commitment cited by U.S. officials, according to traders.

But traders expect Chinese importers to revert to buying mainly South American crop as Brazil's harvest gets going.

"We've got some challenges in the growing season in Argentina but Brazil looks like it's up for another belter of a harvest," said Nick Carracher, CEO of agricultural consultants Lachstock.

At the same time, strong domestic demand for U.S. soybeans, as processors respond to expanding biofuel production requiring soyoil, was helping underpin U.S. prices.

The wheat market was assessing purchases this week by Saudi Arabia and Algeria. While absorbing a chunk of global supply, prices suggested stiff competition between export zones. GRA/TEND

"These new sales offer a view of the competitiveness of Black Sea and Argentine origins," Argus Media analysts said.