July 10 (Bloomberg) -- Corn dropped to a seven-month low and wheat fell as the U.S. Department of Agriculture boosted inventory estimates after farmers planted more than forecast earlier this year. Corn stockpiles may total 1.55 billion bushels on Aug. 31, 2010, 42 percent higher than the June forecast, the USDA said today in a report. Wheat inventories on May 31 may be 706 million bushels, up 9.1 percent. The U.S. is the world’s biggest exporter of the crops. “You could end up with pretty sizeable carryouts if we get normal yields,” said Jason Britt, the president of Central States Commodities Inc. in Kansas City, Missouri. “The weather is going to be the ultimate decision-maker.” Corn futures for December delivery fell 2 cents, or 0.6 percent, to $3.38 a bushel on the Chicago Board of Trade. Earlier, the price touched $3.28, the lowest for a most-active contract since Dec. 10. This week, the grain dropped 5.5 percent, the fifth straight decline. Wheat futures for September delivery fell 3.5 cents, or 0.7 percent, to $5.1875 a bushel. This week, the price dropped 1.9 percent, the sixth consecutive slump. Planting Estimates On June 30, the USDA increased its planting estimate for corn to 87 million acres from 85 million in March. Wheat seedings may increase to 59.8 million acres from 58.6 million. Today, the government increased its estimate of corn production by 3 percent to 12.29 billion bushels from the June forecast. Wheat farmers may harvest 2.112 billion bushels, up from 2.016 billion. Corn is the biggest U.S. crop, valued at $47.4 billion in 2008, government figures show. Wheat is fourth at $16.6 billion, behind soybeans and hay. The U.S. is the world’s leading producer of corn and the fourth-largest grower of wheat behind China, India and Russia.

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