GRAINS-Soybeans firm as USDA pegs condition of the crop below forecasts

SYDNEY, Aug 7 (Reuters) - U.S. soybeans edged higher on Tuesday, rebounding from losses in the previous session, after the U.S. Department of Agriculture pegged the condition of the crop below market expectations.

FUNDAMENTALS

* The most active soybean futures on the Chicago Board Of Trade were up 0.5 percent to $8.98-3/4 a bushel by 0051 GMT, having closed down 1 percent on Monday.

* The most active wheat futures were up 0.1 percent at $5.75 a bushel, having closed up 3.2 percent on Monday.

* The most active corn futures were little changed at $3.85-1/2 a bushel, having gained 0.3 percent in the previous session.

* The USDA said 67 percent of the soybean crop is in good to excellent condition, lagging behind market expectations.

* The USDA said 74 percent of the U.S. spring wheat crop is in good to excellent condition, falling short of market expectations.

* The USDA said 71 percent of the corn crop was in good to excellent condition, matching analysts' expectations.

* Wheat supported by concerns about tightening global supplies as harsh weather slashed harvest prospects around the world.

* Soybeans weighed down by a trade dispute between Washington and Beijing that has stoked fears of a lengthy disruption of massive U.S. exports to China.

* Chinese state media reported that the country could cut its soybean imports by 10 million tonnes this year by relying instead on other feed sources like sunflower and palm.

MARKET NEWS

* The pound remained weak on Tuesday after dropping to an 11-month low against the dollar overnight on worries over a 'hard' Brexit from the European Union, while simmering U.S.-China trade tensions helped support the greenback.

* Oil futures gained on Monday after OPEC sources said Saudi crude production unexpectedly fell in July, raising concerns about global oil supplies as the United States prepares to reinstate sanctions against major exporter Iran.

* The three major U.S. stock indexes closed higher on Monday as investors applauded a strong U.S. earnings season with results from Berkshire Hathaway impressing and Facebook lifting Nasdaq after a report it was planning new services.

DATA AHEAD (GMT)

0600 Germany Industrial output Jun 0600 Germany Trade data Jun 0645 France Trade data Jun 0645 France Current account Jun

Grains prices at 0051 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 575.00 0.50 +0.09% +3.37% 515.37 79 CBOT corn 385.50 0.25 +0.06% +0.33% 369.98 66 CBOT soy 898.25 4.75 +0.53% -0.44% 875.44 54 CBOT rice 11.29 $0.01 +0.09% -1.83% $11.80 19 WTI crude 68.90 -$0.11 -0.16% +0.60% $70.54 48

Currencies

Euro/dlr $1.156 $0.000 +0.02% -0.10% USD/AUD 0.7384 0.000 -0.03% -0.20%

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

(Reporting by Colin Packham; Editing by Amrutha Gayathri)