US grain futures fell sharply on Monday due to improved crop weather in the United States and Europe, with wheat futures sliding 1.5 percent after crop concerns last week drove prices higher for two sessions. Corn futures touched the lowest level in about two weeks and soybeans also declined on pressure from warm and dry weather in the US Midwest, which will allow farmers in the eastern Midwest to catch up on rain-delayed seedings.
A sharp drop in crude oil also weighed on agricultural futures. Traders eager for fundamental news were preparing for the release on Thursday of the US Agriculture Department's monthly supply and demand report. The government will update winter wheat production and corn and soybean ending stocks.
"We'll take a little money off the table and see what the USDA tells us Thursday. The market is waiting for, not necessarily confirmation, but more certainty in the crop production," said Shawn McCambridge, analyst at Prudential Bache Commodities in Chicago. Wheat for July delivery was down 9-1/4 cents at $7.64-1/2 per bushel as of 10:10 am CDT (1510 GMT) at the Chicago Board of Trade. CBOT July corn fell for the second session in a row and was down 9-3/4 cents at $7.44-1/4 per bushel while July soybeans eased 9 cents to $14.05-1/2, breaking a four-session streak of gains.
Warm and dry weather is forecast this week in the US Midwest, which should enable farmers to nearly complete planting corn and soybean crops. USDA late on Monday will update planting progress made last week. In Western Europe, storms and showers brought needed moisture to France, Germany and the UK - the European Union's top three wheat producers - after a spring drought that has parched crops in some major grain belts.