Oct. 9 (Bloomberg) -- U.S. wheat supplies before the next harvest will be larger than forecast a month ago as exports declined and global livestock and poultry herds contracted, the Department of Agriculture said. Unsold supplies on May 31 are forecast at 864 million bushels, the USDA said today, up 16 percent from a September forecast of 743 million and up from 657 million this year, the USDA said today in a report. The consensus of 20 analysts surveyed by Bloomberg News was for 804 million bushels. Wheat for December delivery yesterday rose 10.75 cents, or 2.3 percent, to $4.74 a bushel on the Chicago Board of Trade, the fourth straight gain. The most-active contract has fallen 22 percent this year. Cash wheat prices will average $4.85 a bushel in the crop year that began June 1, compared with last month's estimate of $5.10 and $6.78 in the previous year, the government said. The U.S. is the largest wheat exporter and the third- largest producer of the grain, behind China and India. To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

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