March 4 (Bloomberg) -- Wheat fell to the lowest in eight months after a survey showed reserves will top a government forecast in the U.S., the world’s biggest exporter. Soybeans gained, and corn dropped
U.S. wheat inventories before the 2013 harvest will be 702 million bushels, up from 691 million forecast last month by the U.S. Department of Agriculture, according to a Bloomberg News survey of analysts. World inventories at 176.53 million metric tons may be little changed from last month’s estimate, according to the survey.
“Prices are driven by expectation that inventories in the U.S. will increase,” Joyce Liu, an investment analyst at Phillip Futures Pte. in Singapore, said in a telephone interview. “Improving prospects for the winter crop also eased concerns over supply.”
Wheat futures for May delivery fell 2.5 percent to close at $7.025 a bushel at 2 p.m. on the Chicago Board of Trade after touching $6.975, the lowest since June 25.
The USDA is scheduled to update U.S. and world crop estimates on March 8.
The southern U.S. Great Plains will get as much as 1.5 inches (3.8 centimeters) of rain beginning March 8, boosting soil moisture for wheat emerging from dormancy, according to T- Storm Weather LLC in Chicago. Snowstorms last month bolstered prospects for the hard red winter variety.
Soybean futures for May delivery advanced 1.3 percent to $14.62 a bushel in Chicago on speculation that shipping delays in Brazil will increase overseas demand for U.S. supplies.
Corn futures for May delivery fell 0.7 percent to $7.0325 a bushel on speculation that livestock feeders and ethanol producers will substitute cheaper wheat for corn. May wheat futures closed at a 0.75-cent discount to May corn, down from $1.8225 premium on Nov. 8.
Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, USDA data show.
--With assistance from Whitney McFerron in London. Editors: Millie Munshi, Thomas Galatola