Chicago Board of Trade wheat futures fell 1.5 percent Tuesday after the US Department of Agriculture raised its forecasts of US and world wheat ending stocks above trade expectations, brokers said. USDA in a monthly supply/demand report raised its forecast of global 2014/15 wheat ending stocks to 197.85 million tonnes, above a range of trade expectations and a four year high, if realised. USDA also raised its estimate of 2014/15 world wheat production to a record-high 725 million tonnes.
Also bearish, the Australian Bureau of Agricultural and Resource Economics and Sciences raised its forecast for the country's 2014/15 wheat crop to 23.61 million tonnes, from 23.22 million in December. Domestically, USDA raised its forecast of 2014/15 US wheat ending stocks to 692 million bushel, from 687 million in January. K.C. hard red winter and MGEX spring wheat futures followed CBOT wheat lower. However, by class, USDA cut its forecast of 2014/15 US spring wheat ending stocks while raising its forecasts for hard red winter and soft red winter wheat, a factor that limited losses in MGEX spring wheat.