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GRAINS-Wheat, corn, down on U.S. crop conditions, weather

Barbara Smith

* USDA sees U.S. crops in reasonable state

* U.S. weather forecasts not so hot and dry as feared

* Egypt buys Romanian, Ukrainian wheat at tender

(Recasts with U.S. trade, adds comment, changes dateline, previous HAMBURG) CHICAGO, July 9 (Reuters) - Chicago corn and wheat futures fell on Tuesday after the U.S. Department of Agriculture (USDA) raised its condition ratings for both grains and more crop-friendly weather was forecast in the Midwest. "This downward trend has been led by wheat," said Ted Seifried of Zaner Group. "These crop conditions are absolutely bearish." Soybean futures turned higher, rallying from early declines, supported by a decline in weekly USDA crop condition ratings. Chicago Board of Trade September corn futures were down 7-3/4 cents, or 1.8%, at $4.31-3/4 a bushel at 11:21 a.m. (1521 GMT). CBOT September wheat was down 11-1/2 cents or 2.3% to $4.99-1/2 a bushel after hitting $4.99, falling below psychological support at the $5 mark for the first time since June 10. August soybean futures were up 3 cents or 0.3% to $8.82 a bushel. The USDA said in its weekly crop report on Monday that 57% of the U.S. corn crop was in good to excellent condition, up from 56% last week and matching analysts' expectations.

"There was no bullish news in this report," said Seifried. The USDA said 64% of U.S. winter wheat was in good to excellent condition, up from 63% last week and above expectations of 63%. Some 47% of the U.S. winter wheat harvest was completed, above trade expectations for 45%.

However, the USDA said 53% of U.S. soybeans were in good to excellent shape, down from 54% last week and bucking analyst expectations for an improvement. "Soybeans are trying to find some independent strength," said Seifried. U.S. grain futures rose on Monday after forecasts for hot and dry weather in the U.S. Midwest in the coming days, raising concern that late-planted corn and soybean crops may be stressed. But some forecasts on Tuesday included some rain later in the week. "We're not exactly sure what to make of this weather," said Seifried. "The dry air could help, but it could also distress the crops as well." Wheat futures faced additional pressure from stiff competition for export business, given ample global supplies. Russia's 2019 grain crop may be 2% to 5% bigger than last year's, said Roman Vilfand, head of research at Russian weather forecaster Hydrometcentre. Egypt's main state wheat buyer purchased 240,000 tonnes of Romanian and Ukrainian wheat at an international tender. No U.S. wheat was offered.

CBOT prices as of 11:19 a.m. CDT (1619 GMT):

Net Pct Volume

Last change change

CBOT wheat WU9 500.50 -10.50 -2.1 41231CBOT corn CU9 432.25 -7.25 -1.7 70820CBOT soybeans SQ9 882.25 3.25 0.4 20903CBOT soymeal SMQ9 306.80 1.00 0.3 10329CBOT soyoil BOQ9 28.04 0.05 0.2 6985

NOTE: CBOT September wheat and corn and August soybeans shown in cents per bushel, August soymeal in dollars per short ton and August soyoil in cents per lb.

(Reporting by Barbara Smith in Chicago Additional reporting by Colin Packham Editing by David Evans and James Dalgleish)