US corn futures rose on Tuesday as a bigger-than-expected drop in domestic crop ratings fueled concerns that yields may fall short of previous expectations, traders said. September corn futures advanced 4-1/2 cents to $3.46-1/4 a bushel at the Chicago Board of Trade. Most-active December corn futures also gained 4-1/2 cents, ending at $3.59-3/4.
The US Department of Agriculture (USDA) said on Monday that 72 percent of the country's corn crop was in good to excellent condition. That was down from 75 percent a week earlier and below analysts' estimates for 74 percent. US corn conditions tie for the eleventh highest since 1989, according to Radiant Solutions. The lower-than-expected rating, attributed to hot and dry weather, came after projections for a large US corn harvest helped push corn futures to contract lows last week.