US wheat futures fell on Thursday following bearish data from the US Agriculture Department that predicted bigger-than-expected crop production and ending supplies for the 2011/12 crop year, traders said. The declines in wheat were limited by sharp gains in corn, which rallied 2.7 percent after the government surprisingly cut its estimate of planted acres.
Corn futures prices reached their biggest premium to wheat in 15 years during Thursday's trading session. Trading was heavy, with more than 170,000 wheat contracts changing hands, the biggest volume in about 3-1/2 months. USDA forecast 2011 US winter wheat production at 1.450 billion bushels, above an average of analysts' estimates for 1.392 billion and above the USDA outlook in May for 1.424 billion. USDA pegged 2010/11 US ending wheat stocks at 809 million bushels, below an average of analysts' estimates for 842 million and below the USDA May outlook for 839 million.