SYDNEY  - U.S. corn futures rose more than 1% on Tuesday to hit a near one-year low, as the U.S. Department of Agriculture said planting pace was lagging behind market expectations, stoking fears that farmers will be forced to abandon plans to sow the grain.        

FUNDAMENTALS 

The most active corn futures on the Chicago Board of Trade rose 1.2% to $3.93-3/4 a bushel by 0057 GMT, near the session high of $3.94 a bushel - the highest since June 2018.

Corn closed up 1.5% on Monday.

The most active wheat futures were up 1.2% at $4.83-3/4 a bushel, near the session high of $4.88 a bushel -

the highest since Feb 25.

The most active soybean futures added nearly 0.8% at $8.38 a bushel after closing up 1.2% on Monday.

The USDA said 49% of the corn crop has been planted, behind analysts expectations and a five-year average.

More rains forecast across key U.S. growing regions, stoking fears that farmers may be forced to switch to sowing soybeans which can be planted later.

The USDA said 19% of the soybean crop has been planted, behind market expectations.

Wheat draws support as excessive, potentially crop damaging rains and flooding in the southern Plains, including in top winter wheat state Kansas.        

MARKET NEWS 

The U.S. dollar was roughly unchanged Monday as investors held off on making big moves while awaiting developments in U.S-China trade negotiations and insight into the Federal Reserve's thinking on interest-rate policy. 

Oil prices edged up on Tuesday on signs that producer club OPEC will continue withholding supply this year and as tensions between the United States and Iran escalated. 

U.S. stocks slid on Monday as the White House's restrictions on Chinese telecoms equipment maker Huawei Technologies Co Ltd weighed on the technology sector and raised concerns that the move would further inflame trade tensions between the United States and China.      

(Reporting by Colin Packham; editing by Rashmi Aich)

© Reuters News 2019