GRAINS-Wheat gains as US crop condition ratings worsen

CANBERRA, May 12 (Reuters) - Chicago wheat futures rose for a third day on Tuesday as the condition of U.S. crops worsened and a stalemate between the United States and Iran raised the prospect of longer-lasting disruption to fuel and fertilizer supplies.

Corn futures inched lower, and soybeans were flat.

FUNDAMENTALS

The most-traded wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.8% at $6.39-1/4 a bushel at 0031 GMT, with CBOT corn Cv1 slipping 0.1% to $4.74-3/4 a bushel and soybeans Sv1 almost unchanged at $12.13-1/4.

All three contracts have been pushing higher this year, albeit from a relatively low base following a period of plentiful supply.

Supporting prices have been a drought in the U.S. wheat belt, strong biofuel demand, and the fallout from the war in Iran, which has pushed oil and fertiliser prices sharply higher by reducing supply through the Strait of Hormuz.

The U.S. Department of Agriculture (USDA) on Monday rated 28% of the U.S. winter wheat crop in good-to-excellent condition, down from 31% a week earlier and the lowest for this time of year since 2022.

Analysts had expected 32% to be rated good-to-excellent.

Approximately 70% of the U.S. winter wheat crop is in an area experiencing drought, the government said last week, compared to 22% a year ago.

Planting of U.S. spring crops was, however, running ahead of analysts' expectations, the USDA said.

Oil prices rose for a third consecutive session, with Brent crude LCOc1 trading around $104 a barrel after U.S. President Donald Trump said the ceasefire with Iran was "on life support". O/R

Traders anticipate a busy week. On Tuesday, the USDA will release potentially market-moving global agricultural supply and demand estimates, and a visit by Trump to China between May 14 and 15 could result in Chinese commitments to buy more U.S. farm goods, according to some analysts.

MARKETS NEWS

U.S. equity indexes inched ahead to record closing highs while the dollar edged higher on Monday. MKTS/GLOB