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GRAINS-Corn falls on U.S. crop report, lower crude price
* USDA sees U.S. corn crop in better shape
* Impact of spike in crude oil prices subsides
* Wheat falls, focus returns to large global supplies (Recasts with European trade, adds new comment, changes dateline)
By Michael Hogan
HAMBURG, Sept 17 (Reuters) - U.S. corn futures fell on Tuesday after a U.S. Department of Agriculture (USDA) report that the condition of U.S. crops was better than expected by analysts.
Grains and soybeans also dropped as the impact of Monday’s rise in crude oil prices subsided.
Chicago Board of Trade most active corn was down 1.3% at $3.69-1/4 a bushel at 1109 GMT. Most active soybeans fell 0.7% to $8.93-1/4 a bushel and most active wheat fell 1.1% to $4.83 a bushel.
Grain and soybean markets had risen sharply on Monday on support from surging crude oil prices after weekend attacks on Saudi Arabian oil installations. But crude oil fell again on Tuesday.
"Grains and soybean markets are returning to a focus on fundamentals after the rises on Monday largely driven by the spike in crude oil," said Matt Ammermann, commodity risk manager with INTL FCStone.
"Oil markets are weaker today and the new USDA crop conditions report showed corn in better state than anticipated. Soybean conditions also showed no reasons for new concern."
The USDA said in its weekly crop conditions report on Monday that 55% of U.S. corn was in good-to-excellent condition, unchanged on the week and above analyst expectations of 54%.
U.S. corn harvesting has now started and the USDA said 4% has been gathered, the same as market expectations.
The USDA said 54% of the U.S. soybean crop is in good-to-excellent condition, the same as expected by analysts, but down from 55% last week.
The USDA report "showed a stable crop," brokerage Allendale said in a note.
The trade will continue to react to any weather concerns, trade developments and U.S. crop condition updates as farmers head into the harvest, Allendale said.
“The USDA said there is nothing too extreme currently happening," Ammermann said. "Meanwhile, the U.S. weather outlook remains reasonable and frost risk is not expected, this is resulting in falling prices."
“Wheat is seeing a pullback as the market focus returns to overall plentiful world supplies.”
The USDA said 76% of the U.S. spring wheat crop has been harvested, behind expectations of 82%. The USDA said 8% of U.S. winter wheat has been planted, the same as expected by analysts. (Reporting by Michael Hogan, additional reporting by Colin Packham, editing by Alexander Smith)
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