Corn, soybeans firm as U.S. crop conditions decline; recession fears weigh



SINGAPORE, July 5 (Reuters) - Chicago corn and soybean futures ticked higher on Wednesday, with both markets recovering from multi-month lows reached in the previous session, although concerns over a global recession limited gains.

Wheat rose for the first time in four sessions.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 rose 0.5% to $5.81-1/4 a bushel as of 0015 GMT and soybeans Sv1 added 0.8% to 13.27-1/2 a bushel. Both markets dropped to their lowest since December in the last session.

* Wheat Wv1 rose 0.8% to $8.13-1/2 a bushel.

* After the CBOT closed on Tuesday, the U.S. Department of Agriculture said weekly U.S. crop ratings declined more than analysts expected.

* The USDA rated 64% of the corn crop as good to excellent as of Sunday, down 3 percentage points from the previous week, while analysts surveyed by Reuters on average had expected a 2-point decline.

* The agency rated 63% of the soybean crop as good to excellent, down from 65% a week earlier. Analysts on average had expected a 1-point decline.

* However, beneficial rains in portions of the U.S. Midwest over the Independence Day weekend bolstered crop prospects.

* Elsewhere, Russian wheat export prices fell last week due to pressure from the new crop, which farmers have just started harvesting, a reduced export tax and a decline in Chicago Wv1 prices, analysts said on Monday.

* Sanctions-hit Russia reduced its grain export taxes sharply last week to support shipments in the July-June marketing season.

* Prices for the new wheat crop with 12.5% protein content and for supply from Black Sea ports fell $25 to $375 per tonne free on board at the end of last week, the IKAR agriculture consultancy said.

* In Canada, farmers planted the most wheat this spring in nine years, as bottlenecks in global supplies drove up prices of grain and food, a government report showed on Tuesday.

* Brazilian farmers have harvested nearly a third of their second corn in center south fields, as dry weather and the higher temperatures that prevailed last week continued to favor the work, especially in top grower Mato Grosso.

* According to agribusiness consultancy AgRural on Monday, farmers harvested 30.7% of second corn fields so far in the season, or nearly 25 million tonnes.

* Large speculators cut their net long position in CBOT corn futures in the week to June 28, regulatory data released on Friday showed.

* The Commodity Futures Trading Commission's weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans.

MARKET NEWS

* The euro sank to its weakest level against the dollar in almost 20 years on Tuesday, while oil futures tumbled and bond prices rose as investors sought safety after the latest data fueled fears of a global economic slowdown.

DATA/EVENTS (GMT) 0600 Germany Industrial Orders MM

May 1345 US

S&P Global Comp, Svcs Final PMIs June 1400 US

ISM N-Mfg PMI

June 1800 US

Federal Open Market Committee issues minutes from its June 14-15 meeting
Reporting by Naveen Thukral; Editing by Rashmi Aich

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