Wheat, corn, soy down on US crop conditions, weather

HAMBURG: Chicago corn and wheat fell on Tuesday after the US Department of Agriculture (USDA) said US crops were making decent progress and more crop-friendly weather was forecast there.

Soybeans also dropped although the USDA said US crop conditions lagged behind market expectations.

Chicago Board of Trade most active corn was down 1.6% at $4.36-1/2 a bushel at 1006 GMT. Wheat fell 1.5% to $5.03 a bushel.

Soybeans dipped 0.5% to $8.93 a bushel.

The USDA said in its weekly crop report on Monday that 57% of the US corn crop was in good-to-excellent condition, up from 56% last week and matching analysts' expectations of 57%.

The USDA said 64% of US winter wheat was in good-to-excellent condition, up from 63% last week and above expectations of 63%. Some 47% of the US winter wheat harvest was completed, above forecasts of 45%.

But the USDA said 53% of US soybeans were in good-to-excellent shape, down from 54% last week and behind forecasts of 55%.

"The USDA crop conditions give a reasonable picture of the US corn, wheat and soybean crops despite a slight reduction in the soybean condition," said Matt Ammermann, commodity risk manager with INTL FCStone. "Corn is showing a decent condition despite the serious fears in past weeks about delayed plantings in the United States."

"Weather forecasts today for the US grain belts are also not so hot and dry as were made yesterday which sparked some fear about crop stress."

Chicago markets rose on Monday after forecasts for hot and dry weather in the US Midwest in the coming days, causing concern that late-planted corn and soybeans may be stressed. But some forecasts on Tuesday included some rain later in the week.

"The market is now awaiting indications of how US crop yields will develop. With the USDA conditions report and better forecasts, there are not enough bullish factors to support prices today," Ammermann said.

Despite some recent cuts in Black Sea region harvest forecasts after hot weather, large wheat crops and exports are forecast in Russia and Ukraine this summer, a Reuters poll of analysts showed on Monday.

"What is more, the protein content of the Russian and Ukrainian wheat appears to be above average this year thanks to the weather," Germany's Commerzbank said in a note.

High protein wheat from the Black Sea is expected to be attractive in global export markets.