By Rudy Ruitenberg and Supunnabul Suwannakij April 22 (Bloomberg) -- Wheat fell for the first time in three days in Chicago on concern surpluses will continue to weigh on prices. Corn dropped as favorable weather boosted planting prospects in the U.S., the world’s biggest producer. Wheat for July delivery declined 0.5 percent to $4.975 a bushel on the Chicago Board of Trade at 12:38 p.m. Paris time. Corn for delivery in July slid 0.3 percent to $3.68 a bushel. Rain may have benefited the wheat crop in the U.S., the biggest exporter. As much as six times the usual amount has fallen in the past week in the southern Great Plains, where winter wheat is grown, National Weather Service data show. Prices also declined as the dollar strengthened, making U.S. crops more expensive for importers. “Weather conditions remain favorable so far” and are “highly likely” to stay ideal, Han Sung Min, a broker at Korea Exchange Bank Futures Co. in Seoul, said in an e-mailed comment. “The supply side is expected to be putting strong downward pressure on the grain market.” Global wheat stockpiles will rise to 195.8 million metric tons by May 31, the highest level in eight years, the U.S. Department of Agriculture said in an April 9 report. “The underlying fundamentals for the wheat market remain soft, reflecting the global supply abundance,” Toby Hassall, a commodity analyst with CWA Global Markets Pty, said by phone from Sydney. Sowing in Egypt Egypt, the world’s biggest wheat buyer, plans to raise the area planted with the grain next year to help the country meet 75 percent of its wheat needs, Al Alam Al Youm newspaper reported, citing Agriculture Minister Amin Abaza. Milling wheat for May delivery traded on NYSE Liffe in Paris rose 1 percent to 132.75 euros ($177.01) a ton, while the November contract gained 0.4 percent to 138.25 euros. The dollar climbed against the euro for a sixth day, making exports from European countries sharing the currency more attractive. “The rise of the dollar continues to be a supporting factor due to the competitiveness of exports,” Paris-based farm adviser Agritel said in an online market comment. U.S. farmers accelerated corn planting last week, the U.S. Department of Agriculture reported three days ago, with about 19 percent of corn planted as of April 18 compared with 5 percent at the same time last year. Corn Harvests Dry weather across most of the Great Plains and Midwest regions of the U.S. through today will favor corn planting, forecaster AccuWeather said in a report. Bumper U.S. corn crops will cause unsold pre-harvest supplies to keep rising for at least the next two years, driving prices below production costs, according to Poet LLC yesterday. Poet is the biggest U.S. ethanol producer. Wheat and corn have been weak because there is “massive supply hanging in the market,” said Ben Barber, a futures adviser at Bell Commodities Ltd., from Sydney. Soybeans for July delivery were little changed at $10.065 a bushel in Chicago. Demand for soybean meal in China, the world’s biggest consumer of the animal feed, may rise on expectations hog inventories will expand, the China National Grain & Oils Information Center said. To contact the reporters on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

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