SINGAPORE  - Chicago corn futures rose on Tuesday as the market rebounded from last session's three-week low after a U.S. government report showed the country's crop condition lagging behind market expectations.

The wheat market edged higher on bargain-buying, having suffered its biggest one-day fall in nearly a month on Monday, while soybeans gained ground.

The most-active corn contract on the Chicago Board Of Trade was up 0.8% at $4.30 a bushel by 0223 GMT, having closed down 2.1% in the previous session when prices hit the lowest since July 2.

Wheat added 0.4% to $4.89-1/4 a bushel, after closing down 3% on Monday, the biggest one-day drop since June 28 and soybeans were up 0.3% at $9.08-1/4 a bushel, having closed down 1.5% in the last session.

The U.S. Department of Agriculture (USDA) said 57% of U.S. corn was in good to excellent condition, down 1 percentage point from last week and below analyst expectations.

"The corn market is being supported by the USDA's crop rating report which was slightly below expectations," said Ole Houe, director of advisory services at brokerage IKON Commodities.

"But there is starting to be discussion between traders that yields may turn out better than expected."

Soybeans and spring wheat crop progress results were unchanged in the report, holding firm at 54% and 76% respectively, in line with market expectations.

The European Union's crop monitoring service, MARS, on Monday cut its forecast of the EU soft wheat yield this year to 6.04 tonnes per hectare (t/ha) from 6.10 t/ha last month.

Still, that would be 7.3% above last year's level and 1.6% higher than the average of the past five years, MARS said in a monthly report.

The soybean market is anxiously awaiting progress in the U.S.-China trade talks.

U.S. President Donald Trump said on Friday U.S. Treasury Secretary Steve Mnuchin had a very good talk with his Chinese counterpart, amid signals from China that officials could soon meet face-to-face in their bid to end a yearlong trade war.

Commodity funds were net sellers of CBOT wheat, corn, soybean, soymeal and soyoil contracts on Monday, traders said.

(Reporting by Naveen Thukral; editing by Gopakumar Warrier)

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