GRAINS-Corn futures edge up, soybeans sag on improving US crop ratings

By Tom Polansek

CHICAGO, July 15 (Reuters) - Chicago Board of Trade corn futures extended modest gains on Tuesday as short covering and bargain buying continued to support a rebound from contract lows reached during the previous session.

Soybean futures stumbled under pressure from improving U.S. crop conditions, and wheat futures also weakened.

After trading ended on Monday, the U.S. Department of Agriculture raised its good-to-excellent condition rating for the nation's soy crop by four percentage points to 70%, exceeding traders' expectations.

U.S. corn and soy crop conditions were the best for the middle of July since 2016, weekly USDA data showed.

Some traders already factored good ratings into the markets following beneficial crop weather, said Karl Setzer, partner at Consus Ag Consulting. Extended forecasts signal that temperatures may turn hotter toward the end of July, he added, raising a risk for potentially less favorable growing conditions.

"These ratings are high but it's also mid-July," Setzer said. "These crops should look good in mid-July."

The most-active CBOT corn contract Cv1 was up 2-3/4 cents at $4.20-3/4 per bushel by 11:35 a.m. CDT (1635 GMT). The December delivery contract CZ25 hit a low of $4.07-1/2 on Monday.

"We remain fundamentally constructive on CBOT corn and see value for consumers at current levels," analysts at JPMorgan said, calling the market oversold.

CBOT soybeans Sv1 edged down 2-3/4 cents to $10.04-1/4 a bushel after touching $9.98-1/4 on Monday, the lowest level since April 9.

The U.S. soybean crush in June exceeded an average of analysts' expectations and reached the highest ever level for that month, according to National Oilseed Processors Association data.

Traders continued to monitor sweeping tariffs proposed by U.S. President Donald Trump amid uncertainty over how the duties could affect U.S. export sales.

In global demand news, Algeria's state grains agency OAIC bought milling wheat in an international tender, European traders said.

CBOT wheat Wv1 was down 2-1/4 cents at $5.39-1/4 per bushel.