World wheat prices have fallen from the two-year peak reached last week, when they shot up in response to the crop losses in Russia due to wildfires and an extreme heat wave.
Wheat prices on the Chicago Board of Trade closed 2.5% down on Tuesday, and 18% below last week's peak.
The prices are still 50% higher than they were two months ago, but remain far below the peaks set during early 2008, when shrinking inventories and a rising energy markets helped push wheat futures to record levels.
Market analysts say the two largest global wheat crops in history, in 2008 and 2009, have resulted in much higher stock levels, and a return to the prices of two years ago is considered unlikely.
Meanwhile, a top weather official in Russia says the scorching heat is due to continue for the next 10 days and seeding for the winter grain crops is in danger if there is no rain after that.
Russia, the world's third biggest wheat exporter, suspended wheat exports last week and is facing a 40% drop in this year's grain output.
