Wheat falls more than 2% on supply pressure

Chicago wheat futures fell more than 2% on Monday as ample supplies from continuing Northern Hemisphere harvests weakened sentiment.

Corn and soybeans also fell on expectations of bumper U.S. production as trading resumed after a U.S. holiday on Friday.

"There is general harvest pressure in the wheat market," said Ole Houe of IKON Commodities in Sydney, adding that U.S. wheat had rallied to a level where it was uncompetitive.

The Chicago Board of Trade's most active wheat contract ZW1! fell 2.2% to $5.44-1/4 a bushel by 1014 GMT. Corn ZC1! lost 2.9% to $4.24 a bushel and soybeans ZS1! retreated 1.9% to $10.28-1/4 a bushel.

Wheat prices were weakened by an accelerating U.S. harvest and big crops in the Black Sea region and western Europe.

"Attention is moving to the U.S. Department of Agriculture (USDA) U.S. crop progress reports later on Monday," one trader said. "Generally dry U.S. weather should allow good U.S. wheat harvest progress this week."

Additional downward pressure on wheat was applied by reports that Russia had cut its wheat export tax to zero, raising the prospect of larger Russian shipments.

It is the first time the tax has been removed since its introduction in 2021 to protect Russia’s domestic market from price rises by discouraging exports.

Traders were also concerned about the uncertain outcome of trade talks between the United States and its key partners, particularly China, the world's largest soybean importer.

The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday.

The EU will cut Ukrainian wheat imports by up to 80% to address its farmers' concerns, quotas showed on Friday in a move that could steer Ukrainian exports to Asia and Africa.