* Chicago corn up as U.S. crop condition worsens
* USDA sees conditions below forecasts
* U.S. wheat, soybeans also seen in disappointing state (Recasts with European trade, adds new comment, changes dateline)
By Michael Hogan
HAMBURG, June 25 (Reuters) - Chicago corn futures rose on Tuesday after the U.S. Department of Agriculture (USDA) said the condition of U.S. crops deteriorated last week following rain.
“Corn, wheat and soybeans are being supported today by the disappointing crop condition and sowings figures from the USDA,” said Matt Ammermann, commodity risk manager with INTL FCStone. “Wheat is also underpinned by concern about the heatwave in parts of Europe.”
Chicago Board of Trade most-active corn was up 1.01% at $4.51-1/4 a bushel at 1045 GMT, having gained 1% on Monday.
Wheat rose 0.7% to $5.46-1/2 a bushel. Soybeans rose 0.5% to $9.38-1/4 a bushel.
U.S. crops continue to suffer from the impact of repeated rain in U.S. grain belts.
In its U.S. crop conditions report after the market close on Monday, the USDA said 56% of the U.S. corn crop was in good-to-excellent condition, down from 59% last week and behind market expectations of 59%.
Some 96% of corn was planted. U.S. corn was all planted this time last year.
“U.S. corn crop conditions were below expectations following the repeated rain in the United States in past weeks which hindered sowings,” Ammermann said.
“It is July next week and we are still talking about U.S. corn plantings. This is very late in the season, the delay is not normal and gives crops less time to develop.”
The USDA said 61% of U.S. winter wheat was in good-to-excellent condition, down from 64% last week and expectations of 63%.
Some 54% of U.S. soybeans were seen in good-to-excellent condition, below expectations of 59%. About 85% of U.S. soybeans have been planted, below expectations of 88%.
“Soybean condition and plantings were behind expectations,” Ammermann said. “The market will have to ask itself what the yield impact will be given how late plantings are.”
“U.S. wheat condition was also below expectations, showing the rain in the United States may hit quality. The heatwave in parts of the EU is supportive but in theory this should help quality and remain something of a non-issue for yields.”
A heatwave in west European wheat regions including France and Germany included temperatures over 35 degrees Celsius in some areas forecast for Tuesday. There are also concerns about hot weather in Russia.
“There had previously been considerable rainfall in some areas – in Germany, for example – so the situation is not yet seen as overly alarming,” Commerzbank said in a note. (Reporting by Michael Hogan; Additional reporting by Naveen Thukral; Editing by Mark Potter)