Just how disappointing will the US autumn crops be? Not very, according to the US Department of Agriculture's latest weekly report on crop condition.

Traders had been expecting the report to show falls in ratings for both corn and soybeans, which have been beset by drier-than-ideal weather.

In fact, the report showed both unchanged, in terms of the percentage of crops rated "good" or "excellent". The corn rating was steady at 70%, with soybeans at 64%.

That put a bit of a dampener on a run-up in prices prompted by reports of disappointing US crop yields, with results from the early corn harvest weak, and at a time of robust demand.

"Corn harvest results have that yields slightly below expectations. Yet it is too early to draw any meaningful conclusions," Luke Mathews at Commonwealth Bank of Australia said, flagging the crop condition data.

Day in the sun? 

Sure, not all analysts are convinced of the USDA's analysis.

"Many places in the Corn Belt could sure use a rain soon to help fill the soybeans. Many fields are changing colour so fast, rain in a week or two won't have much benefit" Mike Mawdsley at broker Market 1 said.

"Soybeans may have their day in the sun," price wise that is, "once yield results start to trickle in," he added, noting potential setbacks from the sudden death syndrome fungus.

However, investors were tempted to take profits nonetheless, dragging Chicago corn, which hit a 14-month high on Monday, down 1.1% to .21 a bushel as of 07:20 GMT (08:20 UK time) for September delivery. Better-traded December corn fell 1.4% to .35 � a bushel.

November soybeans dipped 1.2% to .05 � a bushel, with the November lot down 1.2% at .10 a bushel.

Canada frosts 

Some of the profit-taking feel spilled over into wheat too, despite some continued concerns over crops in dry Argentina and Australia, and wet Canada, where only 11% of the grains harvest is complete compared with 17% normally by now.

"Harvest progress was delayed by mid-week rain in eastern Saskatchewan and northern Alberta and scattered rains late in the week across the Prairies," the Canadian Wheat Board said.

The late maturity of the crop has raised fears for frosts.

Indeed, "some light frosts in central and northern Alberta on Sunday hit low lying, less mature crops," the board said. "But overall damage appears modest."

Factored in

Showers are continuing to provide limited relief to drought-hit farms in the former Soviet Union, although as Meteorlogix forecasters noted, "the east Ukraine region saw only a few light showers" from a switch to cooler conditions.

"Chicago wheat is likely to close softer," Phillip Futures said. "We think the drought in Black Sea country was absorbed" in prices hit on Monday.

Indeed, the September lot was 0.7% lower at .66 � a bushel, with the better-traded December contract down 0.7% at .99 � a bushel.

Kuala Lumpur palm oil had better luck, adding 1.1% to 2,570 ringgit a tonne, helped by continued thoughts that forthcoming holidays, such as Eid Al-Fitr, may boost demand for the vegetable oil, besides seeing many plantation workers go on extended holidays.