Dec. 5 (Bloomberg) -- Wheat fell the most in 10 weeks on signs of expanding global inventories as farmers harvest bigger crops in Canada and Australia. Soybeans and corn declined.
Global inventories before next year’s Northern Hemisphere harvest probably will be 179.98 million metric tons, larger than the U.S. Department of Agriculture prediction of 178.48 million tons in November, a Bloomberg survey of 20 analysts and trading firms showed. Canada yesterday boosted its harvest outlook by 14 percent, estimating that farmers are collecting a record 37.5 million tons, while Australia raised its crop estimate 6.9 percent to 26.2 million tons on Dec. 3.
“Obviously, the rising world wheat-stocks forecast is reflected in weaker prices,” Randy Mittelstaedt, the director of research for R.J. O’Brien & Associates in Chicago, said in a telephone interview. “The market is still adjusting to the surprising jump in Canadian production.”
Wheat futures for March delivery fell 1.5 percent to close at $6.52 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop since Sept. 20. Earlier, the grain touched $6.5075, the lowest since Nov. 12.
U.S. export sales in the week ended Nov. 28 fell to the lowest since May, the government said today.
“Rising crops in Australia and Canada mean less demand for U.S. wheat,” Mittelstaedt said.
The USDA will update its supply and demand estimates for global crops on Dec. 10.
Slowing overseas demand for U.S. supplies weighed on corn and soybean prices, Mittelstaedt said. Exporters sold 593,642 tons of corn in the week ended Nov. 28, down 41 percent from a week earlier, while soybean sales fell 43 percent to 805,241 tons, the USDA said today.
Soybean futures for delivery in January slipped 0.1 percent to $13.28 a bushel on the CBOT, while corn futures for March delivery fell 0.7 percent to $4.335 a bushel.
--With assistance from Ranjeetha Pakiam in Kuala Lumpur and Rudy Ruitenberg in Paris. Editors: Millie Munshi, Steve Stroth