Wheat futures declined, reversing their advance, after the U.S. Department of Agriculture raised its estimate on global supplies, boosted by higher-than-expected output in Europe and Russia. December-delivery wheat fell as much a 0.5 percent to $7.295 a bushel in Chicago after rising 1.9 percent yesterday. It traded at $7.3125 at 3:35 p.m. in Singapore time. Global production will rise 3.7 percent to 672.09 million metric tons in 2011-2012, more than the 662.4 million ton estimate last month, the USDA said. Stockpiles will be 188.9 million tons, up from 182.2 million tons, it said. “The world wheat projections were bearish,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a report today. The global stocks-to-use ratio of 28 percent is “comfortably” higher than the 2007-2008 level of about 20 percent, he said. The wheat harvest in Russia, which ended an export ban last month, will total 56 million tons, bigger than the 53 million tons estimated last month, the USDA said. Harvests in Europe will reach 133.5 million tons, compared with 132.1 million tons forecast last month, it said. Corn for December delivery lost 0.5 percent to $7.105 a bushel, after gaining as much as 0.8 percent to $7.20 a bushel, the highest price for the most-active contract since June 9. Corn Harvests Global harvests of corn will total 860.5 million tons in the 2011-2012 season, 11.9 million tons smaller than last month’s estimate, the USDA said, as it pared its output forecast for the U.S. by 4.1 percent. Demand was predicted to outpace production by 8.4 million tons, bigger than the 5.2 million ton deficit forecast by the agency in July, the USDA data showed. Production in the U.S., which is estimated to grow 38 percent of the global corn harvest, will total 12.914 billion bushels (328 million tons), compared with 13.47 billion projected in July, the USDA said. The average prediction of 31 analysts in a Bloomberg survey was for 13.079 billion. Last year’s crop was 12.447 billion bushels. Yields were cut to 153 bushels an acre, down from 158.7 in July. “With weather disappointing during both the U.S. planting and growing season, prices will need to rally further to adjust demand down to the lower available supplies,” Damien Courvalin and Allison Nathan, analysts at Goldman Sachs Group said in a report yesterday. Soybeans for November delivery declined 0.4 percent to $13.27 a bushel in Chicago after gaining 0.8 percent. To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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