By Kirk Maltais

--Soybeans for July delivery reversed mild gains and fell 0.6% to $9.03 1/2 a bushel on the Chicago Board of Trade on Tuesday, as traders became less convinced of any incoming supply tightness despite planting delays.

--Wheat for September delivery fell 0.5% to $5.40 a bushel, after rising as much as 0.8% earlier in the day.

--Corn for July delivery rose 0.2% to $4.47 1/2 a bushel.

HIGHLIGHTS

Reality Check: Soybean and wheat supplies aren't looking as bad as was thought, tempering traders' price optimism. Even with soybean planting still behind the five-year average, there is still a "monstrous supply" of soybeans in the U.S., said Don Roose of U.S. Commodities, making any talk of a shortage of the oilseed in the U.S. premature. In Europe, a heat wave expected to damage the wheat crop is showing signs of becoming less severe, deflating hopes of expanding markets for U.S. grain.

Planting Lag: Only 85% of U.S. soybean acres have been planted, according to the USDA's latest crop progress report. This is below estimates from traders, who predicted 87%-88%, and also below the five-year average of 97%. Particularly lagging behind is Ohio, which has planted only 65% of its soybean acres for the year, down from an average of 98%. Missouri and Michigan are also below 70% planted for soybeans.

INSIGHT

Talking the Talk: Soybeans traders are concerned that President Trump and Chinese President Xi's meeting this week will only restart trade talks, instead of leading to a lasting agreement. "That implies sinking demand for U.S. soybeans for another year, which diminishes the importance for a large U.S. soybean crop," AgResource said. China is the world's largest soybean importer, while the U.S. vies with Brazil for the spot of top producer of the oilseed.

Conditions Deteriorate: Corn in good or excellent condition totaled 56% this week, down from 59% last week and down from 77% at this point last year, according to the USDA crop report. This week was also the first week for 2019 soybean conditions to be assessed, with 54% being rated good or excellent, versus 73% last year. Spring wheat conditions deteriorated by only two percentage points, down to 75% at good or excellent. Winter wheat also slipped slightly, dropping to 61% good or excellent, down from 64% last week. The figures indicate some level of weather damage to crops.

AHEAD

--General Mills Inc. will release its latest quarterly earnings report before the stock market opens Wednesday.

--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.

--Conagra Brands will release its latest quarterly earnings report before the market opens Thursday.

--The USDA will release its latest weekly export sales numbers at 8:30 a.m. EDT Thursday.

Write to Kirk Maltais at kirk.maltais@wsj.com

(END) Dow Jones Newswires

June 25, 2019 16:09 ET (20:09 GMT)