GRAINS-Corn eases 1% as USDA tempers fears over crop situation

    SYDNEY, July 16 (Reuters) - U.S. corn futures fell 1% on
Tuesday after the U.S. Division of Agriculture mentioned the
situation of North American crops was higher than anticipated,
easing fears that manufacturing will fall in need of official
forecasts.
         
    FUNDAMENTALS  
    * Probably the most energetic corn futures on the Chicago Board Of Commerce
 had been down 0.9% at $4.43 a bushel by 0043 GMT, having
closed down 2.7% within the earlier session. Costs hit a five-year
excessive of $4.64-3/Four a bushel on Monday on considerations about scorching, dry
climate, however turned decrease on forecasts for rain.
    * Probably the most energetic soybean futures had been down 0.6% at
$9.14-1/2 a bushel, having closed down 1.2% on Tuesday.
    * Probably the most energetic wheat futures had been down 0.6% at
$5.04-1/2 a bushel, having closed down 2.9% on Monday. 
    * The USDA mentioned in a weekly report that 58% of the corn crop
is good-to-excellent, forward of market expectations of 56%.

    * It mentioned 76% of the U.S. wheat crop is in good-to-excellent
situation, down 2 share factors and behind market
expectations.
    * The USDA report mentioned 54% of the U.S. soybean crops are in
good-to-excellent situation, barely forward of market forecasts.
         
    MARKET NEWS  
    * The greenback edged larger on Monday in skinny summer time buying and selling,
with its potential upside restricted by expectations the Federal
Reserve will reduce rates of interest at subsequent week's coverage assembly.
  
    * Oil costs sank about 1% on Monday on indicators that the
impression of a tropical storm on U.S. Gulf Coast manufacturing and
refining could be short-lived, whereas Chinese language financial knowledge
dimmed the crude demand outlook.  
    * The benchmark S&P 500 index ended little modified on Monday
after oscillating between constructive and detrimental territory
all through the session after Citigroup Inc kicked off the
earnings season with a blended quarterly report.  
        
 Grains costs at  0043 GMT
 Contract       Final  Change  Pct chg  Two-day chg   MA 30   RSI 
 CBOT wheat   504.50   -3.25   -0.64%       -3.54%  522.31     39
 CBOT corn    443.00   -4.00   -0.89%       -3.54%  442.57     50
 CBOT soy     914.50   -5.50   -0.60%       -1.83%  911.48     54
 CBOT rice     11.84  -$0.04   -0.38%       -0.55%  $11.77     73
 WTI crude     59.45  -$0.13   -0.22%       -1.26%  $56.21     60
 Currencies                                                      
 Euro/dlr     $1.126  $0.000   +0.04%       -0.07%               
 USD/AUD      0.7041   0.000   +0.03%       +0.34%               
 Most energetic contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
 RSI 14, exponential
 
    

 (Reporting by Colin Packham; enhancing by Richard Pullin)