Wheat and corn futures tumbled the most this month after the government boosted its estimates for global stockpiles, signaling more supplies for makers of food, animal feed and ethanol. Soybeans also declined. World supplies of wheat before next year’s harvest may total 202.37 million metric tons, more than analysts anticipated and the most since 2002, the U.S. Department of Agriculture said today. Global corn reserves were pegged at 123.19 million tons, 4.9 percent higher than a September forecast and above analysts’ forecasts. The USDA also cut its estimates for U.S. wheat and corn exports. Corn and wheat prices this year have reached the highest since touching records in 2008, as rising demand for meat increased consumption of grain used in livestock feed, and as refining of grain-based fuels increased. While production of both crops will decline this year in the U.S., the world’s largest exporter, output is growing elsewhere in the world. “With these high prices in the world, people are trying to cut back a little on demand,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “High prices have been the signal for more production, at the same time.” Wheat futures for December delivery plunged 5.4 percent to $6.25 a bushel at 10:34 a.m. on the Chicago Board of Trade. A close at that price would mark the biggest drop since Sept. 30. Yesterday, wheat surged 8.1 percent on speculation that the U.S. might recover lost market share in exports. Wheat touched a three-month high in August, before tumbling 23 percent in September. Corn Tumbles Corn futures for December delivery dropped 1.8 percent to $6.335 a bushel on the CBOT, heading for the biggest decline this month. Yesterday, futures jumped by the exchange limit of 40 cents. Before today, the price was up 16 percent in the past year. U.S. corn exports in the marketing year that began Oct. 1 will fall to 40.64 million tons, down 13 percent from last year and the lowest since 2003, the USDA said today. Wheat exports at 26.54 million tons were below last month’s estimate and 25 percent smaller than last year. Soybean futures for November delivery slipped 0.4 percent to $12.3025 a bushel in Chicago. Earlier, the price touched $12.4675, the highest since Sept. 28. The USDA said domestic stockpiles may total 160 million bushels, less than estimated in September and below the average analyst forecast of 186 million. Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, USDA data show. Wheat ranks fourth at $13 billion, behind hay. To contact the reporter on this story: Whitney McFerron in Chicago at wmcferron1@bloomberg.net. To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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