* Corn jumps 1.5% on demand hopes following U.S.-China talks
* Decline in U.S. crop ratings support underpins CBOT futures (Recasts with U.S.-China trade talks, adds quote)
SINGAPORE, Aug 25 (Reuters) - Chicago corn futures rose 1.5% on Tuesday with the market climbing to a more than six-week high, buoyed by expectations of higher Chinese demand for U.S. farm products following talks between the two countries.
Soybeans rose 1.1%, up for a second session, while wheat gained half a percent after closing lower.
“It could lead to higher demand for U.S. agriculture products,” said Ole Houe, director of advisory services at agriculture brokerage IKON Commodities in Sydney. “It has a real chance of changing things.”
The most active corn contract on the Chicago Board of Trade was up 1.5% at $3.50 a bushel, as of 0312 GMT, after hitting $3.50-3/4 a bushel, its highest since July 10.
Soybeans were up 1.1% at $9.15-1/2 a bushel and wheat rose 0.4% to $5.29-3/4 a bushel.
Top U.S. and Chinese officials, who spoke by phone on Monday, see progress on resolving issues over the Phase 1 trade deal reached in January and both sides are committed to the success of the agreement, the U.S. Trade Representative’s Office said.
There was additional support for U.S. grain and oilseed markets after the U.S. Department of Agriculture (USDA) pegged the condition of crops behind market expectations.
The USDA’s good-to-excellent ratings on Monday for the country’s corn and soybean crops fell even further than the expected 2 percentage points each as conditions in the Midwest deteriorated due to hot and dry weather.
Corn experienced the biggest decline, with just 64% of the crop rated good to excellent, a 5 percentage point fall from last week and 3% lower than analyst expectations.
Advisory service Pro Farmer on Friday projected U.S. corn and soybean harvests to fall short of U.S. government forecasts, with a corn crop of 14.820 billion bushels and a soybean crop of 4.362 billion bushels.
Commodity funds were net sellers of CBOT wheat, soybean and soymeal futures contracts on Monday. They were net buyers of CBOT corn and soyoil, traders said. (Reporting by Naveen Thukral; Editing by Shailesh Kuber)
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