GRAINS-Corn recovers from 1-week low, but harvest progress weighs

CANBERRA, Sept 22 (Reuters) – Chicago corn futures edged higher on Wednesday, though gains were capped amid signs of ample global supply as U.S. farmers race to finish harvesting their crops.

FUNDAMENTALS

* The most active corn futures on the Chicago Board Of Trade were up 0.2% at $5.18 a bushel, as of 0155 GMT, having closed 0.9% lower in the previous session when prices hit a one-week low of $5.12-3/4 a bushel.

* The most active soybean futures were flat at $12.73-1/2 a bushel, having firmed 0.9% on Tuesday.

* The most active wheat futures were up 0.4% at $6.93-1/4 a bushel, having closed 1.5% weaker in the previous session.

* The U.S. Department of Agriculture (USDA) said after Monday’s market close that the U.S. corn harvest was 10% complete, ahead of the five-year average of 9% for this time of the year.

* The USDA rated 59% of the U.S. corn crop in good-to-excellent condition, up 1 percentage point from the previous week, while also raising its soybean good-to-excellent score by 1 point to 58%. Analysts on average had expected no change to either ratings.

* USDA data on Monday showed corn export inspections were down 48% from the same week a year ago, while soybean inspections were down 80%.

MARKET NEWS

* The dollar held below a near one-month high on Wednesday as investors focused on two key risks – a default by Chinese property developer Evergrande and the expected pace of U.S. monetary policy tightening.

* Oil prices rose modestly in a see-saw session on Tuesday, as concerns about the global consumption outlook counter-balanced the struggle by big OPEC producers to pump enough supply to meet growing demand.

* Asian stock markets made a cautious start on Wednesday and the dollar held firm amid lingering nerves about the fallout from a looming failure at developer China Evergrande and anticipation the Federal Reserve may move a step closer to tapering.

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