* Traders adjust positions before USDA supply-demand data
* Wheat set for fifth weekly drop after Thursday's low
* Soybeans and corn edge higher
(Updates with European trading, changes byline/dateline) PARIS/SYDNEY, March 8 (Reuters) - Chicago wheat futures edged higher on Friday, consolidating after a one-year low in the previous session, as investors adjusted positions before widely followed U.S. government crop forecasts later in the day. Soybeans and corn also ticked higher before the U.S. Department of Agriculture's (USDA) monthly supply and demand estimates, with uncertainty over the outcome of trade talks between Washington and Beijing contributing to market hesitancy. The most active wheat futures on the Chicago Board of Trade were up 0.6 percent at $4.40-3/4 a bushel by 1307 GMT. In the previous session it closed 2.6 percent down after hitting $4.37-1/2 a bushel, its lowest since January last year. Wheat is down 3.6 percent this week and set for a fifth straight weekly decline. Prices have shed nearly 16 percent during the losing run. Wheat prices have been hit by a wave of investment fund selling, encouraged well as expectations of big harvests in Europe and the Black Sea region. "There was a brief rally early in the year, but it is very hard to sustain a rally when there is an ample supply of wheat," said Phin Ziebell, agribusiness economist at National Australia Bank. The market had shrugged off higher than expected weekly U.S. wheat export sales on Thursday as it slipped to its lowest in more than a year. Some see the fund-driven retreat in wheat as out of step with improving exports and a decline in U.S. wheat plantings. "We now regard the slide in the wheat price as exaggerated and expect to see a counter-movement soon," Commerzbank analysts said in a note. The most active CBOT soybean futures edged up 0.1 percent to $9.03-3/4 a bushel while corn rose 0.2 percent to $3.66 a bushel. Soybeans and corn are also set for a weekly decline, with traders still cautious about prospects for a U.S.-China trade deal that would boost grain shipments. Chinese state-owned firms bought at least 500,000 tonnes of U.S. soybeans on Thursday for shipment primarily from Pacific Northwest grain export terminals from June to September, two traders with knowledge of the deals said.
But investors were setting such positive signals around the ongoing trade negotiations between Washington and Beijing against estimates of a hit to Chinese demand for livestock feed because of swine fever as well as economic data suggesting faltering Chinese growth.
Prices at 1307 GMT
Last Change Pct End Ytd Pct Move 2018 Move CBOT wheat 440.75 2.50 0.57 503.25 -12.42 CBOT corn 366.00 0.75 0.21 375.00 -2.40 CBOT soy 903.75 1.25 0.14 895.00 0.98 Paris wheat May 184.75 0.25 0.14 205.00 -9.88 Paris maize Jun 168.75 -1.00 -0.59 184.50 -8.54 Paris rape May 357.25 -0.25 -0.07 365.25 -2.19 WTI crude oil 55.41 -1.25 -2.21 45.41 22.02 Euro/dlr 1.12 0.00 0.25 1.1469 -2.17
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
(Reporting by Gus Trompiz in Paris and Colin Packham in Sydney Editing by Sherry Jacob-Phillips and David Goodman)