Wheat fell, paring the third weekly advance, after a report showed that global stockpiles will be more than predicted as production climbs and demand drops. Corn and soybeans also declined. Wheat for December delivery fell as much as 0.7 percent to $6.3925 per bushel on the Chicago Board of Trade and traded at $6.3975 at 11:48 a.m. in Singapore. The contract is set to gain 1.3 percent this week. Global wheat stockpiles will be 202 million metric tons at the end of the 2011-2012 marketing year, up 4.7 percent from 193 million tons predicted last month, the International Grains Council said yesterday. World output will total 684 million tons, up from the 679 million tons forecast in September, while consumption will drop to 677 million tons, it said. “This announcement is having a bearish influence on prices,” Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today. “That certainly has offset some of the strength provided by macro- economic events overnight.” Global stocks rallied yesterday after European leaders talked bondholders into accepting 50 percent writedowns on Greek debt and boosted their rescue fund’s capacity to 1 trillion euros ($1.4 trillion) in a package intended to shield the euro area. Wheat surged 4 percent yesterday, while corn and soybeans advanced 2.2 percent and 2 percent respectively. Russian Supplies “We’re seeing the Black Sea producers enter into the market in a fairly big way,” Creed said. “Given that the Black Sea producers are the traditional discounters in the market, this usually has a strong impact on price.” Egypt, the biggest wheat importer, bought 120,000 tons of Russian grain on Oct. 26, shunning U.S. supplies. Russia lifted a ban on exports in July following last year’s drought. Global wheat supplies seem “ample with very large deliveries from the Black Sea region, particularly Russia,” the IGC report said. Corn and soybeans were subject to “profit-taking” today, after the prices gained “sharply” overnight, Creed said. The December-delivery corn contract fell as much as 0.2 percent to $6.50 per bushel, while January-delivery soybeans lost as much as 0.3 percent to $12.40 per bushel on the Chicago Board of Trade. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net To contact the editors responsible for this story: James Poole at jpoole4@bloomberg.net

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