Forex Pros — Wheat futures tumbled to a three-day low on Tuesday, after Russia announced that it would let a ban on wheat exports expire on July 1, alleviating concerns over tightening global supplies.

On the Chicago Mercantile Exchange, wheat futures for July delivery traded at USD7.9912 a bushel during European morning trade, plunging 2.56%, the biggest one-day decline since May 11.

It earlier dropped to USD7.8462 a bushel, the lowest price since May 25.

Russian Prime Minister Vladimir Putin announced on Monday that the country would not extend a year-long ban on wheat shipments, saying the country’s winter-wheat harvest was “quite good”.

First Deputy Prime Minister Viktor Zubkov, who is responsible for the country’s agricultural sector, said that wheat plantings in Russia increased 10% from a year earlier and that the country had more than six million metric tons of the grain in reserves.

“Considering that we really do have grain now and the state of winter grain crops is good, I think that we can lift the export restrictions,” Mr. Zubkov said.

Russia, once the world’s second largest wheat exporter, introduced the ban last August after the worst drought in at least half a century wiped out 37% of its wheat crops.

The ban had been due to expire at the end of December, but was renewed amid fears of another grain shortfall in the 2011-12 season.

President of Russia’s Grain Union, Arkady Zlochevsky said late Monday that Russia can export 2.5 million tons of wheat per month. Total wheat output in Russia was expected to total 90 million metric tons in the 2011-12 season, compared to 61 million tons last season.

Elsewhere, corn for July delivery added 0.2% to trade at USD7.5988 a bushel, while soybeans for July delivery gained 0.45% to trade at USD13.8650 a bushel during European morning trade.