IKAR: GRAINS-Corn, soybeans firm as U.S. crop conditions decline; recession fears weigh

GRAINS-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.

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

* 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.

* 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