Chicago wheat futures lost ground early on Monday, falling after two days of gains as abundant global supplies and a stronger dollar weighed on the market. Corn edged lower, falling for five out of seven sessions, weighed down by a US government estimate of higher-than-expected production. The Chicago Board of Trade most-active wheat contract gave up 0.4 percent to $4.30 a bushel by 0259 GMT, having closed up 0.6 percent on Friday.
Corn lost 0.2 percent at $3.43 a bushel and soyabeans added 0.1 percent to $9.87-3/4 a bushel. Plentiful global wheat supplies and a large Russian harvest have been putting downward pressure on prices. A stronger dollar makes greenback-priced US commodities more expensive for importers holding other currencies.
US wheat is struggling with Black Sea exporters, who are winning a big chunk of the global export business. But India's decision to raise its wheat and peas import tax will reduce the flow of wheat shipments from the main Black Sea producers Ukraine and Russia and has already hit the Russian market for peas, traders and analysts said.
India doubled its import tax on wheat to 20 percent last week, as the world's second biggest producer tries to rein in imports to support local prices. For corn, a supply-demand report issued by the US Department of Agriculture last week raised estimates of the US corn yield to a record-high 175.4 bushels per acre, topping trade expectations. Commodity funds were net buyers of CBOT corn, wheat, soyabean and soyameal futures contracts on Friday and net sellers of soyaoil, traders said.
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