U.S. corn was little changed during European trading on Tuesday as the market tried to find a footing after slipping to its lowest in nearly two years on positive signs for this year's U.S. harvest.
Soybeans were slightly lower, trading close to an earlier three-and-a-half month low, as the oilseed market was also sapped by favorable harvest prospects.
After the market close on Monday the U.S. Department of Agriculture (USDA) put the condition of the crop above market expectations, while brokerage INTL FCStone forecast record U.S. production for both corn and soybeans in this year's harvest.
The estimates added to pressure from beneficial rain in the U.S. Midwest that sent corn and soybean prices tumbling on Monday.
The most active corn futures on the Chicago Board Of Trade was down half a cent at $3.33-3/4 a bushel by 1018 GMT, just off a session low of $3.33 a bushel that was its lowest since October 2014.
"The proportion of U.S corn rated in good to excellent condition added to the bearish tone," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia, adding that updated weather models are also favorable.
"While corn is not yet totally in the clear, the window for significant weather related losses is quickly closing."
The USDA rated 76 percent of the corn crop as good to excellent, unchanged from the week before, and 72 percent of the U.S. soybean crop as good/excellent, up from 71 percent the previous week.
The average analyst estimate was a 1 percentage point decline in the rating for both crops.
Commodity brokerage INTL FCStone on Monday projected U.S. 2016 corn production at 15.146 billion bushels, a record high, with an average yield of 175.0 bushels per acre.
It also forecast the soybean crop at a record 4.054 billion bushels, with an average yield of 48.8 bpa.
The most active soybean futures fell 0.4 percent to $9.57-1/2 a bushel, near a session low of $9.55-1/2 that marked its weakest level since April 19.
Soybeans fell 4.1 percent on Monday as rain forecasts boosted the crop outlook and halted an export-fueled rally from late last week.
The most active CBOT wheat futures were up 0.3 percent at $4.07-1/4 a bushel as the market consolidated close to a near 10-year low touched on Friday.
U.S. export prospects have been clouded by news that Japan and South Korea have each taken steps to block certain imports of U.S. wheat after unapproved genetically-modified (GMO) plants were found growing in Washington state.
Wheat traders were also watching for the result of a latest tender by Egypt, in which cheaper Black Sea origin grain was expected to dominate again.
(Reporting by Colin Packham in Sydney and Gus Trompiz in Paris; Editing by Richard Pullin and Susan Thomas)