* CBOT wheat ticks down after rally on global crop setbacks

* Corn, soybeans lower after tracking wheat up on Monday

* Market digests USDA crop ratings, Midwest rain forecasts

CHICAGO, Aug 3 (Reuters) - Chicago soybean futures sank on Tuesday after the previous day's better-than-expected crop conditions report coupled with forecasts for rain across the U.S. Midwest as the oilseed begins to set seed pods.

Corn and wheat also fell but found support from earlier hot, dry weather that will likely cut yields.

The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 35-1/2 cents to $13.18 per bushel by 11:43 a.m. CDT (1643 GMT), earlier falling to $13.08-3/4, its lowest level since July 6.

CBOT wheat fell 10 cents to $7.19-1/2 per bushel, while CBOT corn dropped 8-1/2 cents to $5.50-3/4 per bushel.

"If we get some moisture on these beans, before they start putting pods on, we could have a really good crop," said Dan Smith, senior risk manager at Top Third Ag Marketing.

The U.S. Department of Agriculture's weekly crop progress report, released after Monday's market close, showed better-than-anticipated ratings for soybeans.

Corn slowed losses, as promising crop conditions in the eastern United States were offset by drought-stricken fields in the western corn belt. The USDA rated the overall corn crop 2 points lower than the week prior and below analyst expectations.

"How good can your corn crop be, from a total production standpoint, with the Dakotas getting hammered and Minnesota being on the fence?" said Tom Fritz, commodity broker at EFG Group.

Wheat was underpinned by reduced crop prospects in North America and Russia and steady demand from leading importers, though mounting cases of the Delta variant of the coronavirus in China and the United States raised doubts over global demand. .

"The wheat market was in line for a little profit taking. I still think your wheat market has potential for higher prices," said Fritz. (Reporting by Christopher Walljasper in Chicago Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Matthew Lewis)