Cereal prices have plunged over recent weeks as investors have pared expectations for disappointing harvests.
Chicago September wheat futures have fallen to 433 cents per bushel from 560 cents at the beginning of July. Corn prices are down from 390 cents to 357 cents, while soya is down from 980 cents to 930 cents.
The latest 2017 US wheat production forecasts have exceeded market expectations, with the US Department of Agriculture (USDA) estimating 1.739 billion bushels versus the consensus 1.713 billion.
Along with the strong US output, the USDA is also expecting a record wheat harvest from Russia and the Ukraine.
Corn and soya, meanwhile, are on the back foot after the USDA issued higher-than-expected estimates for US crop yields.
The sell-off in cereal prices is a reversal of the trend seen in June, when worries over drier conditions in the US saw crop prices spike.
Stock price hit
Shares in agricultural machinery makers have been hit in recent days amid concerns that lower crop prices could mean slower demand for farm equipment.
The stock price of farm equipment name Deere & Company has fallen from just over $132 to below $127 since the middle of last week. Likewise, the stock price of agricultural machinery maker Agco has eased from around $73 to $69.
Patchy EU harvest
This year´s wheat harvest across the EU looks set to be patchy. A good crop from France is expected to contrast with disappointing contributions from the UK and Germany. In the latter cases, excessive rains appear to have damaged quality.
While there are strong forecasts for the French crop, the Polish wheat harvest is also expected to be generally good.