GRAINS-Soybeans rebound, improved US crop rating limits gains

By Naveen Thukral

SINGAPORE, Aug 26 (Reuters) - Chicago soybeans rose on Tuesday, recouping some of last session's losses, although expectations of a bumper U.S. harvest limited the upside in prices.

Corn firmed, while wheat prices fell amid plentiful global supplies.

The most-active soybean contract on the Chicago Board of Trade Sv1 rose 0.6% to $10.54 a bushel as of 0640 GMT. The contract dropped in the last session after hitting two-month highs on Friday.

Corn Cv1 added 0.2% to $4.13-1/4 a bushel and wheat Wv1 shed 0.2% to $5.28-1/2 a bushel.

The U.S. Department of Agriculture raised its good-to-excellent rating for the nation's soybean crop and kept its corn crop rating steady in a weekly report on Monday, surprising analysts who had expected slight declines.

The agency rated 71% of the corn crop as being in good or excellent shape as of August 24, unchanged from a week earlier. It increased the soybean crop rating to 69% good to excellent, up from 68% the previous week.

Expectations of higher U.S. output come as China continues to remain away from the market amid Washington-Beijing trade tensions.

On Sunday, China's ambassador to the U.S. said U.S. protectionism was undermining agricultural cooperation with China and warned that farmers should not bear the price of the trade war between the world's two largest economies.

Commodity funds were net sellers of CBOT soybean, corn, soymeal and soyoil futures contracts and net buyers of wheat on Monday, traders said. COMFUND/CBT