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GRAINS-Wheat jumps 1.1 pct as U.S. crop condition declines

SINGAPORE, June 20 (Reuters) - Chicago wheat futures rose more than 1 percent on Tuesday, with prices underpinned by a further decline in the condition of the U.S. spring crop following weeks of dry weather. Corn edged higher after dropping more than 2 percent in the last session on pressure from forecasts of improved weather in the crop's crucial phase of development.

FUNDAMENTALS

* The U.S. Department of Agriculture (USDA) rated 41 percent of the U.S. spring wheat crop as good-to-excellent, down from 45 percent a week earlier. Analysts surveyed by Reuters had expected an improvement.

* For U.S. winter wheat the good-to-excellent rating stood at 49 percent compared with 50 percent a week ago and below last year's 61 percent, the agency said after the market closed on Monday.

* Russian wheat export prices have risen for a fifth week on the back of higher global benchmarks and due to a possible late arrival of the domestic harvest after rainy weather in the spring, analysts said on Monday.

* High demand from Egypt, the world's largest wheat importer, and Russia's new rules on strict value-added tax accounting for the agriculture sector also added to support, they said.

* Corn fell on Monday on an outlook for cooler temperatures in the Midwest crop belt as the crop nears pollination, a crucial yield-determining phase that usually occurs in July.

* The USDA rated 67 percent of the U.S. corn crop as good-to-excellent, unchanged from the previous week. Analysts surveyed by Reuters on average had expected an improvement of 1 percentage point following rains last week.

* There was a bearish influence from weekly data released on Friday from the U.S. Commodity Futures Trading Commission showing that commodity funds slashed their net short position in CBOT corn by more than 100,000 contracts in the week to June 13.

MARKET NEWS

* World stock markets climbed on Monday as technology and retail stocks rebounded from recent weakness and U.S. Treasury yields rose in the wake of hawkish comments from a Federal Reserve official.

DATA AHEAD (GMT)

0600 Germany Producer prices May 0800 Euro zone Current account Apr 1230 U.S. Current account Q1

Grains prices at 0050 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 472.00 5.00 +1.07% +4.02% 436.58 80 CBOT corn 376.50 1.25 +0.33% -0.79% 373.91 47 CBOT soy 938.75 1.00 +0.11% +0.43% 943.28 57 CBOT rice 11.44 -$0.08 -0.69% -0.31% $10.94 63 WTI crude 44.28 $0.08 +0.18% -1.03% $47.64 31

Currencies

Euro/dlr $1.114 -$0.005 -0.47% +0.01% USD/AUD 0.7591 -0.003 -0.33% +0.20%

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

(Reporting by Naveen Thukral; Editing by Joseph Radford)