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GRAINS-Corn jumps 1% on USDA crop condition report

SYDNEY, Aug 11 – U.S. corn futures rose almost 1% on Tuesday to a one-week high after the U.S. Department of Agriculture said the condition of the crop was lagging market expectations, fuelling fears that bumper crop forecasts may not materialise.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up 0.9% at $3.25-3/4 a bushel by 0056 GMT, near the session high of $3.26 a bushel – the highest since Aug. 4. Corn gained 0.7% in the previous session.

* The most active soybean futures were up 0.1% at $8.74-1/2 a bushel, having firmed 0.7% on Monday.

* The most active wheat futures were up 0.5% at $4.93-1/2 a bushel, having closed down 0.9% on Monday, when prices hit a July 6 low of $4.90 a bushel.

* The U.S. Department of Agriculture (USDA) on Monday rated 71% of the U.S. corn crop as good to excellent in a weekly progress report, down 1 percentage point from a week ago and below an average of trade expectations.

* Soybean ratings improved to 74% good to excellent, up 1 point from the previous week, bucking trade expectations for a 1-point decline.

MARKET NEWS

* The dollar rose on Monday, including against major currencies such as the euro and Swiss franc, as investors focused on the fiscal stimulus plan in the United States and U.S.-China tensions ahead of key trade talks this week.

* Crude oil gained more ground on Tuesday, with prices underpinned by expectations of U.S. stimulus and a rebound in Asian demand as economies reopen.

* Asian stocks were set for a cautious start on Tuesday, following a mixed Wall Street session and as investors eyed stalled U.S. stimulus efforts and worsening strains between Washington and Beijing over Hong Kong.

(Reporting by Colin Packham; Editing by Aditya Soni)

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