* USDA says soybeans withstand period of dry weather
* Market had expected condition to decline slightly
* Wheat falls for first time in five sessions
By Colin Packham
SYDNEY, Aug 5 (Reuters) – U.S. new-crop soybeans fell on Tuesday after the U.S. Department of Agriculture pegged the crop condition above market expectations, while wheat edged lower for the first time in five sessions, though expectations for increased demand for U.S. supplies provided a floor to losses.
Corn fell after posting gains of 2 percent in the previous session, the biggest daily gain for the contract for nearly two months.
Chicago Board of Trade November soybeans fell 0.53 percent to $10.73-3/4 a bushel by 0232 GMT, having closed up 2 percent in the previous session.
“I think we are seeing the market react to the USDA’s crop condition report, which was higher than expected,” said Andrew Woodhouse, grains analyst, Advance Trading Australasia.
The USDA said soybeans were 71 percent good-to-excellent, unchanged from a week ago and up from 64 percent from a year ago. The results beat analysts’ expectations of 70 percent good-to-excellent, according to the average of estimates in a Reuters poll.
September wheat futures fell 0.1 percent to $5.43-1/2 a bushel, having firmed 1.8 percent on Monday when prices hit a two-week high of $5.53-1/4 a bushel amid concerns over the yield damage in key European production areas.
Repeated rain that has spoiled part of the French wheat crop is threatening to cause quality problems in Germany and Poland, increasing the likelihood the European Union will have more feed wheat and less milling crop to sell this season.
Meanwhile, the USDA said spring wheat ratings also held steady at 70 percent good-to-excellent. The spring wheat crop was rated 68 percent good-to-excellent a year ago.
December corn fell 0.34 percent to $3.68 a bushel, having firmed 1.9 percent in the previous session.
Good-to-excellent ratings for corn stood at 73 percent as of Aug. 3, down 2 percentage points from a week earlier. Analysts on average had been expecting corn’s good-to-excellent ratings to come in at 74 percent. Corn was rated 64 percent good-to-excellent a year ago.
Commodity brokerage INTL FCStone on Monday estimated U.S. 2014 corn production at 14.455 billion bushels, with an average yield of 172.4 bushels per acre.
Grains prices at 0229 GMT Contract
Change Pct chg Two-day chg MA 30 RSI CBOT wheat
548.54 57 CBOT corn
392.83 31 CBOT soy
1114.15 48 CBOT rice
$13.43 35 WTI crude
$102.56 25 Currencies
$1.342 $0.000 -0.03%
0.932 -0.001 -0.12%
+0.16% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Colin Packham; Editing by Michael Perry)