* U.S. corn sees profit-taking after surge
* Traders eye further cut in U.S. corn supply estimate
* Wheat prices climb on dire crop ratings (Updates with opening of U.S. markets, changes dateline from previous SYDNEY/MILAN)
By Carey Gillam
KANSAS CITY, Mo., April 5 (Reuters) - U.S. corn futures hit a record high on Tuesday as concerns over tight supplies persisted, while soy fell as China, the world's top oilseed importer, raised interest rates.
Wheat edged higher amid dry weather in the southern Plains growing region, with the U.S. Department of Agriculture saying the winter wheat crop was in the worst shape in nine years.
Corn, which matched the record high price set in June 2008 on Monday, remained in focus ahead of this Friday's USDA April report that is expected to reduce the government's estimate of ending stocks, already at the lowest in 15 years.
Corn has gained about 15 percent since last Thursday after a U.S. Agriculture Department report showed U.S. stockpiles at surprisingly low levels, prompting funds to plow billions of dollars into a market driven by strong demand from ethanol producers and Chinese importers.
Some traders saw the market as overbought after a rise to record highs on Monday, and profit-taking kept further gains in check.
Also providing some pressure was news that China's central bank was raising interest rates in a bid to control inflation.
At 10:04 a.m. CDT, (1504 GMT), corn for May delivery on the Chicago Board of Trade was up 2-3/4 cents at $7.63 a bushel in mixed trade that saw the nearby contract range early from $7.54-1/2 to a new high of $7.66-1/4.
"The immediate impact of the rate hike has seen corn drop into negative territory, but the market is strong and buyers will only take advantage of potential further price decreases during today's session," said Gunter Tschiderer, fund manager at BNP Paribas' Theam Commodities.
Tschiderer expects July corn to rise to $8.00 this week.
The USDA has said corn inventories will hit their lowest level in 15 years at the end of the current season. Data last week showed unexpectedly low supplies as of March 1 and may force USDA to make a further significant downgrade of end-season stock estimates when it updates its monthly report on Friday, adding volatility to the market.
EYES ON WEATHER
Rainy weather in the U.S. Midwest kept the market on edge, and wet conditions could delay seeding of new crop corn.
Conversely, weather conditions were too dry for the new U.S. winter wheat crop, and a new crop condition rating issued Monday showed the new crop in the worst shape in nearly a decade.
Only 37 percent of the U.S. winter wheat crop was rated in good to excellent condition as of April 3, compared with 65 percent in that category a year ago, according to the USDA's first weekly crop progress and condition report of the season. That is the worst condition at this point in the growing season since 2002, when production was the lowest of the last ten years. and
In Kansas, the top wheat producing state, the crop was rated at only 31 percent good to excellent condition, down from 69 percent a year ago.
Wheat prices reflected the concerns. Kansas City Board of Trade May hard red winter wheat was up 3-1/4 cents at $9.51-1/4 early, and CBOT May soft red winter wheat was up 2-1/2 cents at $7.92-1/2 a bushel.
Meanwhile, soybeans for May delivery fell 8-1/4 cents to $13.75-3/4 per bushel.
China's inflation-cooling move weighed on soybeans as well as corn. The advancing harvest of what is expected to be a record South American soybean crop also was a pressure point. As well, talk that soy orders may be switched from the U.S. to South America weighed on prices.
Prices at 10:04 a.m. CDT (1504 GMT)
LAST NET PCT YTD
CHG CHG CHG CBOT corn 763.00 2.75 0.4% 21.3% CBOT soy 1375.75 -8.25 -0.6% -1.3% CBOT meal 354.50 -2.50 -0.7% -4.3% CBOT soyoil 58.78 -0.10 -0.2% 1.8% CBOT wheat 792.50 2.50 0.3% -0.2% CBOT rice 1400.00 8.50 0.6% 0.0% EU wheat 252.00 6.00 2.4% -0.2% US crude 108.34 -0.13 -0.1% 18.6% Dow Jones 12,407 7 0.1% 7.2% Gold 1442.55 6.00 0.4% 1.6% Euro/dollar 1.4209 -0.0008 -0.1% 6.5% Dollar Index 75.8920 -0.0200 0.0% -4.0% Baltic Freight 1462 -36 -2.4% -17.5%