CANBERRA, Aug 29 (Reuters) - Chicago soybean and corn prices fell on Tuesday after U.S. government data showed that a decline in crop conditions due to hot and dry weather was not as severe as many analysts had expected.
Wheat prices also moved lower amid weak demand for U.S. supplies and competition from cheap Russian grain.
FUNDAMENTALS
* The most active soybean contract on the Chicago Board of Trade (CBOT) was down 0.8% at $13.95-1/2 a bushel, as of 0116 GMT. Corn fell 0.9% to $4.92 a bushel and wheat lost 0.2% to $6.15-3/4 a bushel.
* The U.S. Department of Agriculture (USDA) in a weekly crop progress report on Monday rated 58% of the soybean crop as good to excellent, down a percentage point from 59% last week. Thirteen analysts surveyed by Reuters had on average expected a 3 percentage point decline.
* For corn, the USDA rated 56% of the crop as good to excellent, down 2 percentage points from 58% a week ago. Analysts had expected a 3-point decline.
* The relatively modest drop in ratings eased fears about supply. The U.S. is the world's No. 2 exporter of corn and soybeans after Brazil.
* However, soybeans are still up nearly 9% from a low earlier this month after sweltering heat in the U.S. Midwest stressed the crop.
* Temperatures have cooled but below-normal rainfall is forecast over the next two weeks. Soybeans are in their critical pod-setting phase and rely on August moisture to maximize yields.
* Corn and wheat prices have barely rallied, with the markets better supplied.
* The USDA confirmed private sales of 123,000 metric tons of U.S. new-crop corn to Mexico and 296,000 tons of new-crop soybeans to undisclosed buyers, signalling strong demand.
* Commodity funds were net buyers of CBOT soybean, corn, soymeal and soyoil futures and net sellers of wheat futures on Monday, traders said.
* For spring wheat, the USDA rated 37% of the crop as good to excellent, down 1 percentage point and matching the average analyst estimate.
* Also in wheat markets, agricultural consultancy Sovecon raised its forecast for this year's Russian harvest to 92.1 million tonnes from 87.1 million tons.
* Russia is estimated to export 5.1 million tons of wheat in August, up from 3.5 million tons a year earlier, Sovecon said.
* On supplies from Ukraine, however, the Kremlin said the passage of a second ship along a temporary Black Sea corridor had nothing to do with the prospects for reviving a grain deal involving Russia.
* Ukrainian farmers plan to increase the sown area of winter rape for 2024 and may cut the sown area of winter wheat, an agriculture ministry survey showed.
* Germany's grain harvest, meanwhile, will fall 2.9% year-on-year to some 42.23 million tons after suffering from unfavourable weather swinging from drought to rain just before harvest, the agriculture ministry said.
MARKETS NEWS
* Wall Street ended higher and U.S. Treasury yields retraced earlier gains on Monday, capping the first session of a week likely to be light in volume but heavy with economic data that could affect whether the Federal Reserve will take a rate-hike breather in September.
DATA/EVENTS (GMT) 1400 US Consumer Confidence Aug (Reporting by Peter Hobson; Editing by Rashmi Aich)
