By Rudy Ruitenberg and Jae Hur Feb. 25 (Bloomberg) -- Wheat futures fell in Chicago on concern that prices will sag as Russia sells grain from government stockpiles. Global wheat prices may drop 14 percent in coming months as newly harvested crops come to the market or if Russia releases stocks, said Chris Vanhonacker, commercial director at Rosinteragroservis, Russia’s second-largest exporter. Wheat for May delivery slid 1.3 percent to $5.07 a bushel in electronic trading on the Chicago Board of Trade at 12:33 p.m. Paris time, rebounding from a decline of as much as 1.4 percent. “It will be the biggest catastrophe” for the wheat market if Russia releases 3 million metric tons from inventories, Vanhonacker said in an interview. Average export prices may fall to $150 a ton from $175 now, he said. That compares with the current ton-equivalent price of $186.29 for May-delivery wheat traded in Chicago. Milling wheat for May delivery traded on NYSE Liffe in Paris declined 0.4 percent to 125.75 euros ($169.67) a ton. Russia, the world’s third-largest wheat exporter, plans to increase its share of the global trade by raising annual shipments to as much as 25 million tons from an expected 19 million tons this year, Russian Grain Union Chairman Arkady Zlochevsky said in an interview. Corn, Soybeans Corn and soybeans declined in Chicago on speculation that the dollar’s strength may reduce demand for supplies from the U.S., the world’s biggest producer and exporter of the crops. The dollar neared a nine-month high against the euro. Corn has dropped 7.4 percent this year and soybeans have lost 8.7 percent as the U.S. currency has gained 6 percent versus the euro. Corn for May delivery fell 0.7 percent to $3.835 a bushel. The most-active contract touched $3.8775 on Feb. 22, the highest price since Jan. 12. Soybeans for May delivery declined 0.6 percent to $9.5725 a bushel after sliding as much as 0.8 percent. The oilseed touched a five-week high of $9.85 on Feb. 23. The euro fell after Standard & Poor’s said it may cut Greece’s credit rating again by the end of March as a weak economy and political opposition threaten the nation’s ability to reduce the European Union’s largest budget deficit. To contact the reporters on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net; Jae Hur in Tokyo at jhur1@bloomberg.net.

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