GRAINS-Corn, soy prices fall as U.S. crop ratings improve
* USDA crop ratings for corn, soybeans edge higher
* Egypt seeks wheat after prices hit 1-year low
* CBOT corn prices fall to lowest since 2010
(Adds quotes, updates prices)
LONDON, Aug 6 (Reuters) - U.S. corn futures fell to their lowest level in more than two and half years on Tuesday, weighed by the increasing likelihood of a bumper harvest in the world's top producer as weather remained favourable and crop conditions improved.
Soybean prices also fell while U.S. wheat edged higher in a modest rebound from the prior session's one-year low.
"Largely benign weather in the critical month of July and an equally positive outlook for August, along with improved soil moisture in the Midwest, have allayed our fears of a sudden deterioration in the weather over the summer," Standard Chartered analyst Abah Ofon said in a market note.
"The USDA's July yield estimates for corn and soybeans at 156.5 bushels per acre and 44.5 bpa respectively, now look achievable," he added.
Condition ratings for U.S. corn and soybeans edged higher in the latest week, spurred by improving crop health in Illinois, U.S. Department of Agriculture data showed.
The USDA said good-to-excellent ratings, the highest ranking, for both corn and soybeans rose 1 percentage point to 64 percent as of August 4, beating market forecasts.
Analysts were expecting good-to-excellent ratings of 63 percent for both corn and soybeans, according to the average of 10 estimates in a Reuters poll.
Chicago Board of Trade new-crop December corn fell 0.3 percent to $4.59-1/4 a bushel by 1043 GMT after touching $4.55, the lowest level for the contract since October 2010.
Private crop forecaster Informa Economics trimmed its estimate for corn production by 0.8 percent to 14.14 billion bushels. That would still be a record crop and tops the USDA's latest forecast for 13.95 billion bushels.
"Informa came out with a forecast of a large crop. The weather has been encouraging and the crop condition report was good, so there is bearish sentiment around (on prices)," said Brett Cooper, senior markets manager at INTL FCStone Australia.
CBOT November soybeans fell 0.5 percent to $11.77-3/4 a bushel.
Informa lowered its estimate for U.S. soybean production by 3.3 percent to 3.266 billion bushels, keeping it below USDA's estimate for 3.42 billion. The harvest would still be substantial, but smaller than traders anticipated.
Wheat prices were slightly higher with the market looking to consolidate after a sharp setback on Monday.
"Pressure on (wheat) prices has come above all from corn, whose price has plunged... in view of optimal growing conditions in the US and a slight improvement in the condition of US corn plants," Commerzbank said in a market note.
CBOT September wheat rose a marginal 0.08 percent to $6.45-3/4 a bushel after slumping to a low of $6.41-1/2 on Monday, the weakest level for a nearby contract since June 2012.
"Market sentiment would suggest that prices will continue to fall in the short term, despite the price level already being very low," Commerzbank added.
November milling wheat in Paris was up 0.3 percent at 184.50 euros a tonne.
Egypt's main wheat-buying agency, the General Authority for Supply Commodities, set a tender on Monday to buy an unspecified amount of wheat from global suppliers for shipment Sept. 21-30.
(Additional reporting by Naveen Thukral in Singapore; editing by James Jukwey)