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GRAINS-Soybeans edge higher, gains checked by U.S.-China trade war

SYDNEY, Aug 28 (Reuters) - U.S. soybean futures edged higher on Wednesday, recovering from losses of nearly 1% in the previous session, although gains were checked by fears for the global economy amid a protracted trade war between Washington and Beijing.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were up 0.2% at $8.60-3/4 a bushel by 0058 GMT, having closed down 0.9% on Tuesday.

* The most active corn futures were up 0.1% at $3.66-1/2 a bushel, having closed down 0.5% in the previous session.

The most active wheat futures were up 0.2% at $4.77-3/4 a bushel, having closed up 0.3 percent on Tuesday.

* Market eyeing any sign of breakthrough in easing U.S.-China trade tensions.

* The U.S. Department of Agriculture increased its good-to-excellent rating for the nation's soybean crop by 2 percentage points to 55%, topping analysts' estimates for 54%.

* But only 79% of U.S. soybeans had set pods by Aug. 25, breaking the modern-era record for that date of 80%, set in 1996, according to the USDA.

* The USDA also raised its corn rating by 1 percentage point to 57%, matching expectations.

MARKET NEWS

* Renewed caution about resolving the U.S.-China trade war drove investors to safe-haven assets on Tuesday, deepening the Treasury yield curve inversion and lifting the Japanese yen against the dollar.

* Oil prices rose in volatile trade on Tuesday supported by expectations of a drawdown in U.S. crude inventories, though gains were capped by worries about a recession and uncertainty over a China-U.S. trade deal.

* Wall Street slipped on Tuesday, weighed down by financial stocks as a deepening of the Treasury yield curve inversion raised U.S. recession worries and uncertainty over any progress in trade negotiations between the United States and China took a toll.

DATA/EVENTS AHEAD (GMT)

0600 Germany GfK Consumer Sentiment Sept

0600 Germany Import Prices MM, YY July

0800 Italy Consumer Confidence Aug

0800 Euro Zone Money-M3 Annual growth July

(Reporting by Colin Packham; editing by Richard Pullin)