Wheat supply fears ease as US reserves set to exceed forecasts

Wheat snapped a four-day rally after a survey showed reserves in the US, the biggest exporter, may be larger than a government forecast.

US inventories before the 2013 harvest will probably be 702m bushels, up from 691m bushels forecast last month by the US Department of Agriculture, according to a Bloomberg News survey of 29 analysts. World inventories at 176.53m metric tons may be little changed from last month’s estimate, according to the survey. The USDA is scheduled to update US and world crop estimates on Friday.

“Prices are driven by expectation that inventories in the US will increase,” Joyce Liu, investment analyst at Phillip Futures said. “Improving prospects for the winter crop also eased concerns over supply.”

Wheat for May delivery fell 0.7% to $7.155 a bushel by 6:24am on the Chicago Board of Trade. Futures gained 2.2% in the past four sessions on speculation that demand will climb after spot prices became cheaper than corn. The most- active contract touched an eight-month low on Feb 26 as a storm system eased drought conditions in the US.

In Paris, milling wheat for May delivery declined 0.5% to €238.50 ($309.88) a ton on NYSE Liffe.

Corn for May delivery rose 0.3% to $7.105 a bushel in Chicago. Soybeans for May delivery advanced 0.1% to $14.455 a bushel.

* Fianna Fáil will hold a national conference on the future of the CAP in Dublin at the weekend.

The conference will begin at 11am in the Red Cow Moran Hotel, Dublin on Saturday.

The future of the CAP and the future of farming in Ireland will be debated at the conference.

Guest speakers include; Prof Alan Matthews of Trinity College; John Bryan, president of the IFA; Gabriel Gilmartin, president of the ICSA; and John Comer president of the ICMSA.