Wheat may fall on signs that global production of the grain will climb as favorable weather improves growing conditions.

 

The winter crop in the U.S., the biggest exporter of wheat, was rated 68 percent good or excellent, up from 49 percent the prior year, the government said on Nov. 10. Rain fell in parts of Australia, favoring the winter varieties, DTN Meteorlogix said in a report today. Wheat has dropped 42 percent this year, partly on increased production.

 

``It looks like they have adequate moisture, and there doesn't seem to be any issues'' with the U.S. winter crop, said Jim Hemminger, a risk management specialist at Top Third Ag Marketing in Chicago. ``The kind of good rain they've had with that crop going in is helpful.''

 

Wheat futures for December delivery fell 6.5 cents, or 1.2 percent, to $5.1675 a bushel at 6 a.m. on the Chicago Board of Trade. The price has tumbled 62 percent from a record $13.495 on Feb. 27.

 

Global production may rise 12 percent to a record 682.4 million metric tons in the year ending May 31, the U.S. Department of Agriculture said this month. U.S. growers may collect 68 million tons, up 21 percent from the prior year, the agency said.

 

Wheat is the fourth-biggest U.S. crop, valued at $13.7 billion in 2007, behind corn, soybeans and hay, government data show.