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314463

GRAINS-Corn falls after USDA pegs crop conditions above market forecast

CANBERRA, June 2 (Reuters) - U.S. corn futures edged lower on Wednesday after the U.S. Department of Agriculture pegged the condition of crops above market expectations, tempering concerns about supplies.

FUNDAMENTALS

* The most-active corn futures on the Chicago Board of Trade fell 0.3% to $6.86-1/2 a bushel by 0112 GMT, having gained 4.8% in the previous session.

* Soybean futures were down 0.1% at $15.46-1/2 a bushel, having firmed 1.2% on Tuesday.

* Wheat futures slipped 0.4% to $6.90-1/2 a bushel, having closed up 4.5% on Tuesday when prices hit a May 18 high of $7.02 a bushel.

* The U.S. Department of Agriculture on Tuesday rated 76% of the U.S. corn crop as good-to-excellent in its first condition ratings for the 2021 crop, above the average estimate of 70% in a Reuters analyst poll.

* The USDA said U.S. farmers planted 84% of their intended soybean acreage, below the average estimate in the Reuters poll of 87%.

* The USDA rated 48% of the winter wheat crop in good-to-excellent condition, matching trade expectations and marking an improvement from 47% the previous week.

* AgRural, a Brazilian agribusiness consultancy, on Tuesday announced a forecast reduction for the country's second corn crop because of a severe drought, adding that yields are expected to touch a five-year low this season.

MARKET NEWS

* The dollar clung to small gains from overnight on Wednesday, edging back from near a five-month trough versus major peers, as a pick up in U.S. manufacturing kept bets alive for a quicker normalisation of Federal Reserve policy. (Reporting by Colin Packham; editing by Uttaresh.V)

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