GRAINS-US wheat futures sag on crop rating boost; corn, soybeans firm

By Julie Ingwersen

CHICAGO, June 10 (Reuters) - Chicago wheat futures fell to their lowest level in more than a week on Tuesday as improving U.S. crop condition ratings and seasonal pressure overshadowed early harvest delays and drought in Russia, traders said.

Corn futures rose in a bounce from multi-month lows and soybeans steadied as soyoil BOv1 futures firmed.

As of 1:06 p.m. CDT (1806 GMT), Chicago Board of Trade July wheat WN25 was down 7-1/2 cents at $5.34-1/2 per bushel after dipping to $5.30-3/4, its lowest since May 29. CBOT July corn CN25 was up 4-1/4 cents $4.37-3/4 a bushel, rallying after slipping to $4.29-1/4, the contract's lowest since mid-October.

July soybeans SN25 were up 1-3/4 cents, or 0.2%, at $10.57-3/4 a bushel while July soyoil BON25 was up 0.38 cent, or 0.8%, at 47.76 cents per pound.

Wheat futures slid a day after the U.S. Department of Agriculture raised its ratings of the U.S. spring and winter wheat crops more than most analysts expected. The government rated 53% of the spring wheat crop in good-to-excellent condition, up from 50% the previous week, while winter wheat ratings improved by 2 points to 54% good-to-excellent.

The improvements signalled rising yield potential that appeared to outweigh concerns that the U.S. winter wheat harvest was only 4% complete, lagging the five-year average of 7%.

"The overall improvement in the winter wheat crop the past couple of weeks does little to support wheat prices, especially with spring wheat condition ratings rising as well." StoneX chief commodities economist Arlan Suderman wrote in a client note.

Russia's largest grain-producing region, Rostov, declared a state of agricultural emergency in some drought-hit areas. However, Russia's 2025 grain harvest is seen at 135 million metric tons, above last year's level of 130 million tons, Interfax news agency quoted Deputy Prime Minister Dmitry Patrushev as saying. Russia is the world's biggest wheat exporter.

Soybean futures edged higher as ongoing trade talks between China, the world's No. 1 importer of the oilseed, and the United States, the second-largest exporter, fuelled optimism about a resolution of the countries' tariff battle.

But benign crop weather anchored both corn and soybean futures. For corn, the USDA on Monday rated 71% of the crop as good to excellent, up 2 points from last week, while soybean ratings improved by 1 point with 68% rated good to excellent.

"U.S. weather forecasts remain favourable for corn development," CM Navigator analyst Donatas Jankauskas said in a note.