Wheat dropped after the U.S. Department of Agriculture said that global stockpiles in the 12 months that end May 31 will be larger than analysts expected.
World inventories will total 185.76 million metric tons at the end of the season, the USDA said today. Analysts surveyed by Bloomberg News before the report expected 185.06 million tons as hot, dry weather threatened crops in the U.S., Russia and Ukraine.
“The wheat stocks were within the range,” Jason Britt, the president of brokerage Central States Commodities Inc. in Kansas City, Missouri, said by telephone today. “The way the wheat numbers are reacting everybody seems to be taking them relatively neutral. I’m not seeing anything that stands out on wheat that makes me want to be overly bullish or bearish.”
Wheat futures for July delivery fell 0.2 percent to $6.29 a bushel at 8:21 a.m. on the Chicago Board of Trade. The price has dropped 19 percent in the past year.
Wheat is the fourth-largest U.S. crop, valued at $14.4 billion in 2011, behind corn, soybeans and hay, government data show.
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