BLBG:Wheat Drops as USDA Report May Show Higher Reserves; Corn Climbs
Wheat declined for a second day before the U.S. Department of Agriculture monthly crop report that anlaysts say should show higher world inventories before the 2013 harvests. Corn advanced.
The USDA may raise its forecast for global inventories at the end of the 2012-2013 marketing year to 178.82 million metric tons from 178.23 million tons last month, according to the average estimate of 18 analysts surveyed by Bloomberg. The U.S. reserves will probably total 730 million bushels, more than 716 million forecast in March, a separate survey showed.
“The trade expects a modest upgrade to U.S. wheat ending stocks,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a report today.
Wheat for delivery in July fell 0.7 percent to $7.09 a bushel at 5:12 a.m. on the Chicago Board of Trade. Trading was 18 percent higher than the average for the past 100 days, according to data compiled by Bloomberg. The USDA crop report is at noon in Washington.
In Paris, milling wheat futures for November delivery dropped 0.5 percent to 214.50 euros ($280.93) a metric ton.
Corn for May delivery gained 0.1 percent to $6.45 a bushel and soybeans for delivery in the same month fell 0.2 percent to $13.9325 a bushel.
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
