Chicago wheat futures fell on Monday, extending last week's slide driven by ample supplies and sluggish demand for U.S. exports.
Wheat lost 2.6 percent last week after the U.S. Department of Agriculture lifted its production estimate for the winter wheat crop as well as overall U.S. ending stocks for 2015/16.
"The burden of stocks is more in the U.S. than elsewhere so the chances are that it will continue to weigh on U.S. futures prices," said Tobin Gorey, an analyst at Commonwealth Bank of Australia.
Wheat for July delivery on the Chicago Board of Trade was off 1.4 percent at $4.96-3/4 a bushel at 1054 GMT, after earlier dipping to $4.96-1/4, its lowest since June 2.
Gorey said weather forecasts suggested more rain on U.S. hard red winter wheat areas next week followed by a drier weather pattern.
"Crops need to realise that drier pattern otherwise further declines in wheat quality are likely," he said.
Paris wheat futures also eased with September down 1.1 percent at 178.25 euros a tonne.
Dealers noted dry conditions remained a concern in some parts of western Europe although there were some showers over the weekend.
"Weekend rain was not sufficient to provide the moisture now urgently needed and fears are that yield forecasts will be downgraded in the near future," one German trader said.
Soybean prices fell as rains in the U.S. Midwest boosted crop prospects, although there remained concerns about excessive moisture in some areas.
"The favourable weather at present is pressuring the price because it is ensuring sufficient moisture levels," Commerzbank said in a market note.
"By contrast, the fact that rain is hampering planting in some regions is seen as virtually no cause for concern."
CBOT soybeans for July delivery were off 0.8 percent at $9.32-1/4 a bushel.
Corn prices also fell with July down 0.8 percent at $3.50-1/4 a bushel.
Dealers said the market was continuing to keep a close watch on developments in China with the world's second-largest corn consumer likely to take steps to curb imports of corn and substitutes such as sorghum and barley.
China's Heilongjiang province, the country's top corn producing region in the northeast, will again increase subsidies to local corn processors to help the loss-making industry and encourage more use of domestic corn.
Beijing's stockpiling scheme, aimed at boosting rural incomes, has pushed domestic corn prices more than 30 percent above global prices in the past year. (Additional reporting by Manolo Serapio Jr. in Singapore and Michael Hogan in Hamburg; Editing by Susan Fenton)