PARIS/MUMBAI - U.S. and European wheat futures rose on Monday, recovering after a three-day slide, as attention turned back to the impact of drought ahead of weekly U.S. crop data. Chicago corn futures were higher as the market also awaited the U.S. Department of Agriculture's (USDA) crop progress report later on Monday to see if U.S. planting accelerated last week after a slow start.

Soybeans extended gains to touch a fresh four-week high, supported by strength in vegetable oil markets as traders wrestled with the terms of Indonesia's exit from a recent ban on palm oil exports. A sharp fall in the dollar and firmer crude oil also supported U.S. grains.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 1.9% at $11.90-3/4 a bushel by 1120 GMT. In Europe, September wheat on Euronext was up 0.9% at 424.50 euros ($453.24) a tonne.

After surging a week ago following India's announcement of an export ban, wheat prices fell back from mid-week as India appeared to loosen its embargo, while weather forecasts showed rain for drought-affected U.S. and French growing belts. However, an annual field tour of Kansas found the lowest yield potential in the top winter wheat state since 2018, while crop ratings for French wheat fell sharply for a second straight week.

"Traders will be watching the (USDA's) crop rating to be published this evening," consultancy Agritel said of wheat. "In France, the current storms are welcome, but do not prevent the risk of a drop in production."

The war in Ukraine is also maintaining supply tension. The United Nations indicated last week it was trying to broker a deal to allow grain to be shipped from Ukraine, whose ports have been closed since Russia's invasion in February. Moscow, however, said on Monday the West had triggered a global food crisis by imposing the severest sanctions in modern history on Russia.

"Wheat supplies for exports are only shrinking because of the Ukraine war, exports ban and deteriorating weather conditions," said a Mumbai-based trader with a global trading house. CBOT corn rose 0.6% to $7.83-1/2 a bushel. Soybeans were up 0.4% at $17.11-1/4 a bushel after earlier reaching a new four-week high at $17.20. Soyoil rose in step with palm oil as Indonesia replaced an export ban with export permits and requirements for domestic sales volumes. 

(Reporting by Gus Trompiz in Paris and Rajendra Jadhav in Mumbai Editing by Subhranshu Sahu and Mark Potter)