GRAINS-Wheat rallies more than 1 pct on USDA crop condition report

* USDA pegs condition of wheat crop below estimates

* Corn also rallies on USDA report

* Soybeans edge higher

SYDNEY, May 31 (Reuters) - U.S. wheat rose as much 1.3 percent on Wednesday after the U.S Department of Agriculture pegged the condition of the crop below market expectations, though ample global supplies provided a ceiling to gains. Corn also rose as much as 1.3 percent as the condition of the crops was also pegged behind forecasts, while soybeans edged higher for the first time in six sessions. The most active wheat futures on the Chicago Board Of Trade rose 0.76 percent to $4.32-3/4 a bushel by 0303 GMT, near the session high of $4.35-1/4 a bushel. Wheat closed down 2 percent on Tuesday. "The USDA reported that both winter and spring wheat conditions had deteriorated a little after trading closed. The headline might briefly help prices in early trading today but the details do not contain any real surprises," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. The USDA rated 50 percent of the U.S. winter wheat crop and 62 percent of the spring wheat as good-to-excellent. However, both figures fell below analysts' expectations.

The most active corn futures rose 0.8 percent to $3.70 a bushel, having touched a high of $3.71-3/4 a bushel. Corn closed down 1.9 percent in the previous session. The USDA said 65 percent of the corn crop was in good-to-excellent condition, below an average of analysts' expectations for 68 percent. The most active soybean futures rose 0.14 percent to $9.14 a bushel, having closed down 1.5 percent on Tuesday.

Grains prices at 0303 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 432.75 3.25 +0.76% -1.25% 432.83 55 CBOT corn 370.00 3.00 +0.82% -1.14% 369.50 52 CBOT soy 914.00 1.25 +0.14% -1.35% 958.23 24 CBOT rice 11.16 -$0.03 -0.22% +1.69% $10.32 70 WTI crude 49.37 -$0.29 -0.58% -0.86% $48.87 47


Euro/dlr $1.117 -$0.001 -0.09% +0.08% USD/AUD 0.7446 -0.002 -0.24% +0.13%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Colin Packham; Editing by Christian Schmollinger)