Corn futures fell for a second day after the U.S. Department of Agriculture forecast that the nation’s stockpiles will be bigger than analysts expected. Corn for December delivery fell 0.2 percent to $3.945 a bushel on the Chicago Board of Trade at 11:12 a.m. in London. Corn reserves in the U.S., the world’s largest grower and exporter, will fall 7.1 percent to 1.373 billion bushels, the USDA said in the report on July 9. The USDA estimates were “not as bullish as expected,” Commonwealth Bank of Australia said in a report published today. The U.S. agency also raised its estimate for U.S. soybean production to 3.345 billion bushels, up 35 million, as the area harvested was forecast to expand to a record 78 million acres (31.6 million hectares). Soybeans for November delivery lost 0.4 percent to $9.4975 a bushel. September-delivery wheat was 0.2 percent higher at $5.39 a bushel. Wheat futures earlier gained as much as 0.7 percent as dry weather persisted in Russia and Kazakhstan, raising concern that global supply may be smaller than estimated by the USDA. Milling wheat futures for November delivery declined 0.3 percent to 160.5 euros ($202) a metric ton on Liffe in Paris. The USDA on July 9 cut its estimate of global stockpiles of wheat at the end of the 2010-2011 marketing year by 6.9 million tons to 187 million tons from a month earlier. The agency pared output estimates for some exporters including Russia and Kazakhstan on concern dry weather will curb yields. To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

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