European wheat futures fell on Tuesday in step with a drop in US prices as a US Department of Agriculture (USDA) crop report forecast large grain supplies and as recent rainfall eased drought worries in Europe.

Results of a wheat import tender by Algeria were awaited.

September milling wheat on the Paris-based Euronext exchange unofficially closed down 1.25 euros, or 0.6%, at 186.75 euros ($202.7) a tonne.

Chicago wheat markets fell 1% in early trade and were down 1.4% after the USDA's May world supply and demand report included forecasts that US corn supplies will rise to their highest in 33 years with demand for ethanol remaining weak following this year's large plantings.

September wheat is now the front month on Euronext after Monday's expiry of May futures, the last remaining contract for the 2019 crop.

The return of rain in dry parts of Europe this month has averted widespread damage to wheat, analysts and traders said.

However, the recent dry spell led Russian consultancy to reduce its forecast for this year's wheat harvest in Russia, the world's biggest wheat exporter.

European traders were also watching closely for results of a purchase tender being held on Tuesday by Algeria, the largest buyer of French wheat, after a recent lull in new export demand.

Algeria's grain agency OAIC is making a second attempt to start its 2020/21 import campaign after failing to buy in a previous tender for shipment this summer.

In France, the farm ministry kept almost unchanged its estimate of the soft wheat area for this year's harvest, still expecting a 7.5% drop from last year after a rain-hit autumn sowing season. In Germany, traders were assessing the impact of rain which fell on Tuesday, with more forecast.

German wheat benefited from rainy start to May after a very dry March and April but more moisture was still needed.

"We have had some decent rain volumes in past days, and I think south Germany is looking good but more rain is needed in the northern and eastern grain areas," one German trader said.