The USDA projected a US corn crop of 10.785 billion bushels, down 200 million bushels, or 1.8 percent, from last month despite the largest plantings since 1985. That would be far below the record 11.807 billion bushels of 2004.

Wheat growers were forecast to reap a larger-than-expected 2.208 billion bushels this year, up 89 million bushels from the USDA's June estimate. The government projected a US cotton crop of 19.80 million bales, up 300,000 bales from June. Soybeans were down slightly at 2.89 billion bushels.

Half of the corn in Illinois, usually the nation's No. 2 corn state, was in poor or very poor condition as of Sunday. In Indiana, 27 percent of corn was in those two categories and in Ohio, 16 percent was poor or very poor.

"The crop is crying for rain," said private consultant John Schnittker. Some rainfall was expected this week, blown into the eastern Corn Belt by Hurricane Dennis.

Corn is the most widely grown US crop, planted on 81.6 million acres (33 million hectares). It is a base ingredient in livestock rations and increasingly used in making motor fuel, aside from food and other industrial uses.

Deputy Agriculture Secretary Chuck Conner said soybeans in the eastern Corn Belt during a recent trip were "much smaller than usual." But he added, "I didn't see anything that good rain from Dennis wouldn't benefit."

The storms may also carry spores of yield-cutting soybean rust fungus already found in Florida, Georgia and Alabama. That threat was "something to keep your eyes on the next couple of days," Conner told reporters.

CORN FUTURES CHOPPY ON WEATHER UNCERTAINTY

At the trend-setting Chicago Board of Trade, futures prices for corn were up slightly at the end of the day, supported by concerns that remnants of Hurricane Dennis would bring less rain than initially thought to the parched eastern Midwest. Corn for July delivery was up 1/4 cent, to $2.27 a bushel. December corn was also up 1/4 cent at $2.47.

November soybeans were up 11 cents, to $7.12-1/2 a bushel on prospects of smaller South American crops and a drop from last year's record US crop. July wheat was down 3-1/4 cents, to $3.23-3/4 a bushel.

In assessing the corn crop, USDA said yields would average 145 bushels an acre this year, compared with 160.4 bushels an acre for the 2004 crop, which enjoyed nearly ideal weather.

Across the Mississippi River, corn was in dramatically better shape. Three-fourths of the crop in Iowa, Minnesota and Nebraska was rated as good or excellent.

Globally, the USDA cut its monthly estimate of corn stocks for 2005/06 by nearly 7 million tonnes to reflect smaller crops in the United States and elsewhere. The worldwide stockpile of corn at the end of 2005/06 is now seen at 114 million tonnes, down from nearly 126 million tonnes in 2004/05.

Soybean fields west of the Mississippi River were in better condition than those to the east, USDA ratings showed. Overall, soybeans are in better shape than corn, now in a critical reproductive stage. Soybeans mature in August and tolerate drought better.

The USDA raised its US wheat forecast because of record-high winter wheat yields in South Dakota and Montana and "much better than previously expected" yields for soft red winter wheat. It also said durum and spring wheat crops would be 4 percent larger than last year.