SYDNEY, Oct 27 (Reuters) - U.S. wheat futures edged higher on Tuesday on worries about global output after the U.S. Department of Agriculture pegged the condition of the country's crop below market forecasts.
FUNDAMENTALS
* The most-active wheat futures on the Chicago Board of Trade were up 0.1% at $6.20-1/2 a bushel by 0131 GMT, having closed down 2% on Monday.
* Soybean futures were down 0.2% at $10.81-1/2 a bushel, having earlier hit a session high of $10.85-1/2 a bushel - the highest since July 2016. Soybeans firmed 0.4% on Monday.
* Corn futures were little changed at $4.17-1/2 a bushel, having lost 0.4% in the previous session.
* The U.S. Department of Agriculture (USDA), in a weekly report on Monday, said 41% of U.S. winter wheat was in good or excellent condition, below analysts' average expectation for 52%.
* The USDA said 85% of U.S. winter wheat was planted, slightly below forecasts.
* Meanwhile, the USDA also said 72% of corn was harvested and 83% of soybeans were harvested, both slightly behind market expectations.
* Exporters struck separate deals to sell 120,700 tonnes of U.S. soybeans to unknown buyers and 135,000 tonnes of U.S. soymeal to the Philippines, the USDA reported on Monday.
MARKET NEWS
* The dollar clung to small gains as the greenback's safe-haven appeal was burnished by worries about a second wave of COVID-19, which drove the steepest stock market selloff in a month and underpinned a bond rally.
* Asian markets look set to continue a downward path on Tuesday after soaring global coronavirus cases and shrinking hopes for a U.S. stimulus deal took a toll on Wall Street and drove up the U.S. dollar. (Reporting by Colin Packham; editing by Uttaresh.V)
