GRAINS-Wheat eases on improved US crop rating, corn steadies after six-month low

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, June 3 (Reuters) - Chicago wheat edged lower on Tuesday, giving up some of the previous session's gains as better-than-expected U.S. crop ratings put the focus back on favourable harvest prospects.

Corn and soybeans ticked up after hitting six-month and seven-week lows, respectively, that were also linked to good crop conditions.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 0.4% to $5.36-3/4 a bushel by 1144 GMT.

The contract had risen sharply during Monday's session as a Ukrainian drone attack in Russia shifted attention back on the war between the two grain exporters, though prices pared their gains by the close.

"As often happens, the rally failed to hold," CM Navigator analyst Donatas Jankauskas said in a note. "The U.S. crop progress report is helping cool the wheat market further this morning."

In its weekly crop progress report released after Monday's close, the U.S. Department of Agriculture estimated that 50% of U.S. spring wheat and 52% of winter wheat were in good to excellent condition, up from the prior week and exceeding average analyst expectations.

The U.S. winter wheat crop has been plagued by persistent dryness, but recent rains have helped the crop rebound.

However, comments by Ukraine's agriculture minister suggesting the country's cereal harvest may fall by as much as 10% this year also underlined mixed harvest prospects in parts of the Northern Hemisphere.

Traders were nonetheless monitoring war headlines as Ukraine appeared to be continuing strikes against Russian targets.

A bounce in the dollar index =USD, which makes U.S. grain dearer overseas, also curbed wheat prices.

CBOT corn Cv1 inched up 0.1% to $4.38-3/4 a bushel, after reaching its lowest since early December at $4.34-1/4 earlier in the session. Soybeans Sv1 added 0.4% to $10.37-1/4 a bushel as it held above Monday's seven-week low of $10.32-1/2.

The USDA rated 67% of U.S. soybeans in good to excellent condition in its initial ratings of the 2025 soy crop, just below an average of analyst estimate for 68% but roughly on par with previous years. For corn, the agency's rating improved to 69% good-to-excellent, up a percentage point from last week and in line with trade expectations.

The soybean market has also been pressured by renewed trade tensions between the United States and China, the world's biggest soybean buyer, after President Donald Trump on Friday accused Beijing of violating an agreement with the U.S. to mutually roll back tariffs.