CANBERRA, Dec 5 (Reuters) - Chicago wheat futures fell on Tuesday after rising to their highest since August in the previous session when the U.S. government confirmed the largest one-off private wheat sale to China in years.

Soybeans edged higher after falling in recent sessions as rain forecasts eased fears about supply from drought-stricken areas of Brazil.

Corn prices dipped.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.5% at $6.17-1/2 a bushel by 0256 GMT after reaching $6.26-1/2 on Monday. Prices have risen around 10% in the last week.

* CBOT soybeans rose 0.1% to $13.07-3/4 a bushel and corn fell 0.3% to $4.84-1/4 a bushel.

* The U.S. Department of Agriculture (USDA) on Monday confirmed private sales of 440,000 metric tons of U.S. soft red winter wheat to China, the largest Chinese purchase of U.S. wheat since at least 2020.

* Speculators have built a large net short position in wheat futures, leaving the market vulnerable to bouts of short-covering that push prices higher.

* Commodity funds were net buyers of Chicago wheat on Monday, traders said, while selling soybeans, soymeal and soyoil.

* Ukraine's grain exports have fallen to around 13.4 million metric tons so far in the July 2023-to-June 2024 marketing season from 18.3 million tons over the same period a year ago, government data showed.

* Cheap exports of wheat from Russia have kept prices near three-year lows in recent months, but Russian export prices rose slightly last week and consultants Sovecon lowered their estimate for November shipments by 0.4 million tons to 3.4 million tons.

* Russia's harvest is almost complete.

* Meanwhile, Canadian farmers will harvest more wheat than was expected several months ago, a government report showed, though it still predicted the second-smallest crop in six years, at 32 million metric tons.

* The Australian government also raised its forecast for winter wheat production by about 100,000 metric tons but said the 25.5 million ton harvest would still be 37% smaller than last year's after dry weather reduced yields.

* Relatively small crops in Australia, Canada and Argentina are contributing to global undersupply of wheat.

* Corn, which remains close to three-year lows, drew support on Monday from a USDA report showing that more than 1.2 million metric tons were inspected for export in the latest week, well above trade expectations.

MARKETS NEWS

Asian stocks slipped to three-week lows on Tuesday while bonds and the dollar steadied as investors tempered expectations for cuts to U.S. interest rates and waited on U.S. jobs data.

(Reporting by Peter Hobson; Editing by Mrigank Dhaniwala)