SINGAPORE, June 28 (Reuters) - Chicago corn lost more ground on Wednesday, while soybeans slid for a second session as forecasts of rains in some of the parched growing regions in the United States weighed on prices.
Wheat dropped to a one-week low on easing worries about Russian supplies.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.3% to $5.59-1/4 a bushel, as of 0007 GMT, not far from last session's lowest since May 22 at $5.55 a bushel.
* Soybeans fell 0.2% to $12.91-3/4 a bushel and wheat gave up 0.7% to $6.94-1/4 a bushel, after dropping earlier in the session to $6.90-1/4 a bushel, the weakest since June 20.
* Forecasts for rain in the grain belt later this week and next week tempered concerns about dry weather that has stressed crops this month.
* The condition of U.S. corn and soybean crops has deteriorated to the worst in decades, U.S. Department of Agriculture data (USDA) showed on Monday.
* The USDA rated 50% of the U.S. corn crop and 51% of the soybean crop as good to excellent, down from 55% and 54%, respectively, last week. The ratings were the lowest for this time of year since 1988, a year of historic drought.
* As weather outlooks lifted optimism about supplies, questions about demand for U.S. grains lingered, given stiff global competition for export business.
* In the wheat market, the focus turned back towards competitive prices in Russia after jitters caused by the weekend mutiny by the Wagner militia fuelled a rally on Monday.
* The European Union's crop monitoring service MARS on Monday forecast Russia's wheat production this year at 86.7 million metric tons, underlining expectations for an above-average crop.
* However, Ukraine's grain harvest is likely to fall to 42.5 million metric tons in 2023 from around 53 million metric tons in 2022 due to a smaller sowing area, the Ukrainian Agribusiness Club business association said on Tuesday.
* Commodity funds were net sellers of CBOT corn, soybean, wheat and soymeal futures contracts on Tuesday, and net buyers of soyoil futures, traders said.
MARKET NEWS
* U.S. stocks advanced in a broad rally on Tuesday, while the dollar softened as robust economic data eased recession fears and stoked investors' risk appetite.
DATA/EVENTS (GMT) 0600 Germany Gfk Consumer Sentiment July 0645 France Consumer Confidence June 0800 EU Money-M3 Annual Grwth May (Reporting by Naveen Thukral; Editing by Rashmi Aich)
