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GRAINS-Wheat futures edge higher in turnaround from losses

Tom Polansek

* Wheat recovers after dropping to one-month low on Tuesday

* Traders await news on U.S./China trade talks

* Hog disease threatens Chinese soy demand (Adds start of U.S. trading, new comments, changes byline/dateline)

CHICAGO, April 17 (Reuters) - U.S. wheat futures rose on Wednesday in a rebound from falls to one-month lows a day earlier on the Chicago Board of Trade and contract lows in Kansas City and Minneapolis markets.

Soybean and corn futures eased at the CBOT.

Wheat's price drop on Tuesday attracted bargain buying and short covering on Wednesday, traders said. There was no fresh supply or demand news to justify the price recovery, they said.

Expanding global supplies and competition for export business have knocked down the most actively traded CBOT wheat contract by 10 percent on the year so far.

"It's more of a technical rebound than anything," said Brian Hoops, president of U.S. broker Midwest Market Solutions.

Most-active July wheat was up 3-3/4 cents at $4.52-1/4 a bushel at 12:48 p.m. CDT (1748 GMT), after dropping to its lowest price since March 13 on Tuesday. Nearby May wheat was up 4 cents at $4.49 a bushel.

CBOT May corn was down 1/2 cent at $3.58-1/2 a bushel, while May soybeans slipped 6 cents to $8.82 a bushel.

The markets were waiting for fresh signs of progress in U.S. trade talks with top global soy buyer China. Shipments of U.S. soybeans to China sank last year after Beijing imposed tariffs on imports from the United States.

The United States and China have tentatively scheduled a fresh round of face-to-face trade talks, with negotiators aiming to hold a signing ceremony in late May or early June, according to the Wall Street Journal.

"We have been in this waiting position for months and prices are no longer reacting sharply to speculation about a settlement," said Matt Ammermann, commodity risk manager with broker INTL FCStone.

Traders are now worried that Chinese soybean demand will suffer further because an epidemic of the fatal hog disease African swine fever in China could cut demand for soymeal feed.

Chinese pork prices are set to jump 70 percent in the second half of the year due to hog deaths, a senior official said.

"I think beans are fundamentally over-valued," Hoops said.

The U.S. Department of Agriculture will provide an update on weekly export sales on Thursday.

Traders and analysts estimate U.S. soybean sales in the week ended April 11 were 350,000 to 850,000 tonnes. Sales are estimated at 500,000 to 950,000 tonnes for corn and 350,000 to 700,000 tonnes for wheat.

(Reporting by Tom Polansek in Chicago; additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore; editing by Alexander Smith and Susan Thomas)