CHICAGO": Chicago Board of Trade corn futures rose 2.3% on Tuesday, to their highest in more than six weeks, supported by a government report showed the US crop conditions were worse than expected and rising export demand from China, traders said.
Deteriorating crop conditions and a pick-up in overseas demand also supported soyabean futures while wheat gained on bargain buying following a sharp decline on Monday.
Corn futures were on track for their third straight day of gains after the US Agriculture Department said that good-to-excellent ratings for the US crop sank to 64% in the week ended Aug. 23, down 5 percentage points from the prior week.
"Ratings losses exceeded expectations yesterday afternoon and more will be likely after a dry, scorching week for the corn belt," Matt Zeller, director of market information at StoneX, said in a research note.
At 10:24 a.m. CDT (1524 GMT), Chicago Board of Trade December corn futures were up 8 cents at $3.53 a bushel. The most-active contract hit its highest since July 10.
CBOT November soyabeans were 10 cents higher at $9.15-3/4 a bushel.
US soyabeans were rated 69% good-to-excellent, down from 72% last week.
USDA on Tuesday said Chinese importers bought more US soyabeans and booked their largest single-day US corn purchase in nearly a month as Washington and Beijing reaffirmed their commitment to their Phase 1 trade deal.
Senior US and Chinese officials, who spoke by phone on Monday, see progress on resolving problems over the deal and say both sides are committed to the success of the agreement.
"It could lead to higher demand for US agriculture products," said Ole Houe, of agriculture brokerage IKON Commodities. "It has a real chance of changing things."
CBOT December soft red winter wheat was up 11-1/4 cents at $5.39 a bushel.
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