Wheat Declines Before USDA Report on U.S. Inventories

Wheat rose, erasing earlier declines, on speculation that a government report tomorrow will show U.S. inventories will fall before the 2013 harvest. Soybeans and corn were little changed.

Supplies may total 741 million bushels by the end of the marketing year May 31, less than the government’s forecast last month of 754 million bushels, according to a Bloomberg survey. The U.S. Department of Agriculture will update its estimate Jan. 11. Futures rose as much as 0.5 percent and fell as much as 0.4 percent today in Chicago. The USDA also may report tomorrow that farmers planted the most winter wheat crops in four years, according to the survey.

Traders are “awaiting key USDA reports to set the tone for subsequent trade action,” Rory Deverell, an INTL FCStone commodity risk manager in Dublin, said in a report today. “There is a strong probability this will be a more influential report than usual given the widely divergent opinions of U.S. carryout and feed demand.”

Wheat for March delivery rose 0.2 percent to $7.52 a bushel by 6:07 a.m. on the Chicago Board of Trade. Futures gained 19 percent last year as drought cut grain output in countries including the U.S. and Russia. In Paris, milling wheat for March delivery advanced 0.2 percent to 246.25 euros ($321.36) a metric ton on NYSE Liffe.

Corn for March delivery lost less than 0.1 percent to $6.885 a bushel, after swinging between gains and losses of 0.3 percent. Soybeans for delivery in the same month rose less than 0.1 percent to $13.8675 a bushel, after rising and falling as much as 0.4 percent.

U.S. soybean inventories before the 2013 harvest may total 135 million bushels, larger than the government’s forecast at 130 million bushels last month, according to the Bloomberg survey. Analysts expect the USDA to leave its forecast for corn supplies unchanged at 647 million bushels.

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