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GRAINS-Corn gains nearly 1.5% as U.S. crop deteriorates in hot, dry weather

SINGAPORE, Aug 23 (Reuters) - Chicago corn futures jumped to a one-week high on Tuesday, gaining 1.4% after a U.S. government report showed condition of the crop worsened amid hot and dry weather in key regions across the Midwest.

Wheat and soybeans rose around half a percent.

FUNDAMENTALS

* The Chicago Board of Trade (CBOT) most-active corn contract was up 1.4% at $6.38 a bushel, as of 0035 GMT, the highest since Aug. 15. Wheat rose 0.5% to $7.92-1/2 a bushel and soybeans climbed 0.6% to $14.43-1/4 a bushel.

* Condition ratings for corn and soybeans declined in the latest week, the U.S. Department of Agriculture (USDA) said after the market closed on Monday, bucking analyst expectations for no change as stressful dry conditions continued to impact crops.

* In its weekly crop progress report, the USDA rated 55% of the U.S. corn crop in good-to-excellent condition, down from 57% the previous week. For soybeans, the government rated 57% of the crop as good-to-excellent, down from 58% previously.

* The market waits early updates from fields surveyed in Ohio, South Dakota and Nebraska on the annual Pro Farmer Crop Tour.

* On the demand front, the USDA said on Monday that weekly export inspections of soybeans totalled 686,583 tonnes in the week ended Aug. 18, in line with market forecasts. The agency boosted its estimate of the previous week's soybean inspections to 768,328 tonnes from 744,571 tonnes.

* Corn export inspections were 740,508 tonnes and wheat export inspections were 594,273 tonnes. Both were in line with a range of analysts' estimates.

* The European Union's crop monitoring service MARS on Monday lowered its yield forecasts again for summer crops in the bloc, with major cuts in maize (corn), sunflower and soybeans, as it expected further damage from the recent dry and hot weather.

* Crop prospects in the EU have taken on extra significance this year as Russia's invasion of Ukraine - a major wheat, corn and sunflower exporter - has disrupted Black Sea exports and raised uncertainty over Ukraine's harvest.

* Grain traders union UGA on Monday cut Ukraine's 2022 combined grain and oilseeds crop forecast to 64.5 million tonnes from the previous outlook of 69.4 million due to a smaller than expected harvested area caused by the Russian invasion.

* The union said in a statement that Ukraine could export 32.8 million tonnes of its key agriculture commodities in the 2022/23 season, including 10 million tonnes of wheat.

* Commodity funds were net buyers of CBOT soybean, wheat, soymeal, corn and soyoil futures contracts on Monday, traders said.

MARKET NEWS

* U.S. shares fell sharply and the dollar surged on Monday as fears mounted that central bank efforts to tame rising consumer prices with inflation-busting interest rate hikes will weaken the global economy and lead to a recession.

DATA/EVENTS (GMT) 0030 Japan JaibunBK Mfg, SVC PMIs Flash SA Aug 0030 Japan JaibunBK Comp Op Flash SA Aug 0500 Japan Chain Stores Sales YY July 0715 France S&P Global Mfg, Serv, Comp Flash PMIs Aug 0730 Germany S&P Global Mfg, Serv, Comp Flash PMIs Aug 0800 EU S&P Global Mfg, Serv, Comp Flash PMIs Aug 0830 UK Flash Comp, Mfg, Serv PMIs Aug 1345 US S&P Global Mfg, Serv, Comp Flash PMIs Aug 1400 EU Consumer Confid. Flash Aug 1400 US New Home Sales-Units July (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)

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