Corn flat as rising crude and fast US planting assessed

• Wheat fell as forecasts for rains in parts of Europe boosted crop prospects, while USDA gave a positive assessment of the state of US wheat crops.

HAMBURG: Chicago corn futures were little changed on Tuesday, as the market weighed support from firm crude oil prices against the impact of rapid progress in U.S. corn planting.

Wheat fell as forecasts for rains in parts of Europe boosted crop prospects, while the U.S. Department of Agriculture (USDA) gave a positive assessment of the state of U.S. wheat crops.

Soybeans were weakened after the USDA said U.S. plantings were progressing faster than expected.

Chicago Board of Trade most-active corn was unchanged at $3.15-1/2 a bushel at 1131 GMT.

Wheat dropped 1.2% to $5.13 a bushel. Soybeans fell 0.1% to $8.35 a bushel.

Oil prices rose on expectations of fuel demand as countries start to ease coronavirus lockdowns.

"Corn and soybeans are torn between the positive impact of higher crude oil prices and the bearish impact of a fast rate of U.S. plantings and fear of U.S.-China trade tension," said Matt Ammermann, commodity risk manager at INTL FCStone.

"The USDA said U.S. farmers have been able to plant both corn and soybeans at a rapid rate which was faster than market expectations. Soybean planting progress was especially fast. Overall U.S. weather also looks positive for sowing progress in the next week."

The USDA said after Monday's market close that U.S. farmers had planted 51% of intended corn acres on Sunday, above analyst estimates in a Reuters poll of 48% and over the five-year average of 39%.

The USDA said U.S. farmers had planted 23% of their intended soybean acreage, above estimates of 21%. Soybean plantings were up from just 8% a week ago and over the five-year average of 11%.

"Oil has risen but strong U.S. planting progress and demand destruction due to the coronavirus will limit any gains," said Ole Houe of brokerage IKON Commodities.

Markets were also concerned that renewed political tensions  between Washington and Beijing over the origins of the coronavirus pandemic could hinder new purchases of U.S. farm products by China.

"Wheat is being weakened by the beneficial rains received by crops recently in Europe and the Black Sea region and decent U.S. crop conditions," Ammermann said. "Rain in Europe and parts of Russia is not a one-off answer but it has improved the crop outlook in rival exporters to the United States."

"There had been concern about possible stress to U.S. wheat after some frosts in April followed by warm weather. But the USDA's crop condition rating showed a decent state of U.S. winter wheat with no immediate cause for major concern."

The USDA rated 55% of the U.S. winter wheat crop in good to excellent condition, up from 54% last week. Analysts had expected a decline to 53%.