By Tony C. Dreibus Oct. 23 (Bloomberg) -- Wheat fell from an 11-week high as concern for rising global supplies more than outweighed signs that wet weather is delaying planting in the U.S., the world’s biggest exporter. World production may total 668.1 million metric tons, the second-biggest crop behind the 682.3 million tons harvested last year, the U.S. Department of Agriculture said in a report on Oct. 9. Inventories are expected to jump 12 percent to 186.7 million, the USDA said. As output gained in countries including Ukraine and Russia, demand for U.S. wheat has waned. “Looking at the global perspective, the producers had a good year,” said Larry Young, a senior trader at Infinity Futures Inc. in Chicago. “The supplies are definitely there.” Wheat futures for December delivery fell 4 cents, or 0.7 percent, to $5.4775 a bushel on the Chicago Board of Trade, dropping in the last 15 minutes of trading. Earlier, the price reached $5.7475, the highest for a most-active contract since Aug. 4. Even after today’s decline, the price gained 9.8 percent for the week, the steepest rally since the week ended April 3, as planting of winter wheat lagged behind the average pace of the previous five years. Wheat is up 25 percent since touching a two-year low of $4.3925 on Oct. 2. The gains prompted some investors to sell, amid signs that demand for U.S. wheat is slowing, Young said. Exporters shipped 8.5 million tons to overseas buyers from the start of the marketing year on June 1 through Oct. 15, down 35 percent from the same period a year earlier, the USDA said in a report. Importers committed to buy 30 percent less from U.S. inventories, government data show. Wheat is the fourth-biggest U.S. crop, valued at $16.6 billion in 2008, behind corn, soybeans and hay, government data show. To contact the reporter on this story: Tony C. Dreibus in Chicago at Tdreibus@bloomberg.net.

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