Improving weather prospects led to pressure on US grain prices Tuesday. In Chicago, July wheat fell 7 cents to $5.94 a bushel with a break expected later this week in the rain that has hindered the winter harvest.

Sentiment was also weakened by news that Australia’s wheat output will more than double this year, providing some relief for hard-pressed global supplies. Widespread autumn rains have provided a good start for the winter season and Australia’s wheat harvest is forecast to rise by 130 per cent to 22.5m tonnes in the year to March 2008, according to the government.