(Recasts first sentence with U.S. wheat trading, updates with U.S. trading, adds analyst comment, dateline pvs PARIS/SYDNEY)
CHICAGO, July 24 (Reuters) - U.S. wheat futures fell to their lowest level in more than three weeks on Monday, led by a 4.4 percent drop in MGEX spring wheat, on profit taking as traders said damage from a drought in the U.S. Plains has been fully priced into the market.
Corn and soybean futures also weakened, on better harvest prospects as the weather improved in key growing areas of the U.S. Midwest, traders said.
"The realization of seeing some rain and having some more in the forecasts is really pounding the markets pretty hard today," said Joe Lardy, research analyst at CHS Hedging.
With spring wheat harvesting getting under way, weather damage to that crop was seen as already done and supply pressure coming from advancing harvests of winter wheat in the United States and Europe added to the bearish tone.
At 10:11 a.m. CDT (1511 GMT), MGEX spring wheat for September delivery was down 31-1/2 cents at $7.34-1/4 a bushel. Chicago Board of Trade September soft red winter wheat was 12-1/2 cents lower at $4.86-3/4 a bushel while K.C. hard red winter wheat for September delivery was off 12-1/2 cents at $4.83-1/2 a bushel.
All three wheat markets hit their lowest prices since June 29.
CBOT November soybean futures were down 16-3/4 cents at $10.05-1/2 a bushel while CBOT December corn shed 5 cents to $3.88-1/2 a bushel.
Traders shrugged off a U.S. Agriculture Department report that showed better-than-expected weekly soybean export inspections of 596,920 tonnes. Weekly wheat and corn inspections were in line with market forecasts.
After some showers last week and during the weekend, more rain is expected across much of the U.S. Midwest this week, while summer heat is expected to ease next week.
"Dry weather has been the big concern and so this (rain) event will ease some fears," said Phin Ziebell, agribusiness economist at National Australia Bank.
Grain markets are awaiting USDA's weekly crop ratings, which will be published after the close of U.S. trading on Monday, for the latest indication of the weather impact, after a slight decline in ratings last week. (Additional reporting by Colin Packham in Sydney and Gus Trompiz in Paris; Editing by David Goodman and Matthew Lewis)