By Jae Hur Nov. 4 (Bloomberg) -- Corn and soybeans declined as a strengthening dollar reduced the appeal of supplies from the U.S., the biggest exporter of both commodities. Wheat also fell. The dollar rose for a fourth day against the euro on speculation the European Central Bank will lower rates to cushion the impact of a slowing economy. Corn lost 18 percent in October and soybeans 11 percent, the fourth straight monthly decline. The dollar rose 9.7 percent last month against the euro, the biggest monthly rally in 16 years. ``The dollar's strength has been working as a negative factor on the grain market,'' Shuji Sugata, research manager at Mitsubishi Corp. Futures & Securities Ltd. in Tokyo, said today by phone. ``The downside will be limited following a private forecast of less-than-estimated U.S. harvests.'' Corn for December delivery fell 3.25 cents, or 0.8 percent, to $3.9975 a bushel in electronic trading in Chicago by 10:42 a.m. Singapore time. The price has fallen 50 percent from a record $7.9925 on June 27. Soybeans for January delivery were down 0.3 percent at $9.345 a bushel after trading between $9.3125 and $9.4425. The contract has fallen 43 percent from a record $16.3675 on July 3. U.S. corn and soybean harvests will be less than the government forecast last week after wet weather in June trimmed corn acreage and reduced soybean yields, according to FCStone Group Inc., a commodity research and brokerage company. Corn Crop Production of corn will total 11.99 billion bushels, 0.4 percent less than the 12.033 billion estimated last week by the U.S. Department of Agriculture, Bevan Everett, a risk-management consultant at the West Des Moines, Iowa-based FCStone, said yesterday. The company had predicted 12.026 billion bushels in October. Farmers harvested a record 13.1 billion last year. The soybean harvest will be 2.916 billion bushels, 0.7 percent less than the 2.938 billion forecast on Oct. 28 by the government and up from the 2.889 billion estimated by FCStone in October, Everett said. Farmers harvested 2.676 billion bushels last year and a record 3.19 billion bushels in 2006. FCStone's crop estimates are based on a survey of grain elevator managers, grain processors and farmers in 18 states and reflect actual harvest results. About 55 percent of the corn crop was harvested as of Nov. 2 and 86 percent of the soybeans were collected, the USDA said yesterday. The government is scheduled to release its fourth survey- based production forecasts for corn and soybeans on Nov. 10 at 8:30 a.m. in Washington, after questioning farmers and making yield tests in randomly selected fields across the Midwest. The dollar gained as much as 0.7 percent to $1.2555 per euro and the MSCI Asia Pacific Index gained added as much as 1.9 percent to 89.46. Wheat for December delivery dropped as much as 9.25 cents, or 1.7 percent, to $5.5275 a bushel and was at $5.5575 by 10:47 a.m. Singapore time. The contract gained 4.8 percent yesterday as a drop of 21 percent in October, the biggest monthly decline since February 1986, boosted interest. To contact the reporter for this story: Jae Hur in Singapore at jhur1@bloomberg.net

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