By Rudy Ruitenberg and Luzi Ann Javier Feb. 12 (Bloomberg) -- Soybeans, corn and wheat fell after China ordered banks to set aside more deposits as reserves, raising concern that tighter lending in the world’s most populous country will restrain a global economic recovery. Soybeans for March delivery fell as much as 1.2 percent to $9.32 a bushel in electronic trading on the Chicago Board of Trade, while corn also has a similar drop. Wheat slumped as much as 2.3 percent. “China is the world’s largest buyer of soybeans, and there are concerns about interest rates and demand,” said Julien Thierry, a consultant with Paris-based Agritel. “Demand concerns are prompting a decline.” The People’s Bank of China told banks to maintain larger reserves for the second time in a month, as policy makers aim to avert asset bubbles and curb inflation after flooding the economy with money last year to help lift economic growth. Soybeans also slipped on speculation investors and farmers in the U.S., the world’s biggest producer and exporter of the oilseed, are selling contracts to lock in prices as futures head for the first weekly gain in six. The oilseed traded at $9.335 a bushel at 12:50 p.m. Paris time, heading for a 2.2 percent gain this week. Corn for March delivery traded at $3.7075 a bushel, on track for a 5.5 percent weekly increase. Soybeans and corn climbed this week as a weaker dollar lifted the appeal of U.S. supplies, and as forecasts for snow and freezing weather next week in the Midwest, the country’s largest growing region, raised concern about disruptions to deliveries. Taking Profit “A lot of farmers will move to lock in prices,” Jonathan Barratt, managing director at Commodity Broking Services Pty. in Sydney, said by phone today. “Investors will look to take profit because the run up has been pretty good.” Argentina’s Buenos Aires Cereals Exchange said the country will harvest 19.3 million metric tons of corn this season, up from last week’s forecast of 18.4 million tons. Wheat for March delivery fell to $4.8225 a bushel before trading at $4.8425, trimming the gain for the week to 2.3 percent. Milling wheat traded on NYSE Liffe in Paris for delivery in March was unchanged at 126 euros ($171) a ton. Prices for the grain will peak at $5 a bushel next season and slide to $4.75 by 2016, the U.S. Department of Agriculture said yesterday. Global wheat inventories will climb to 195.9 million tons this year, from 164 million tons a year earlier, the USDA said this week. “We’ve got world stocks at levels which would not encourage planting,” Barratt said. Forecast output declines should support prices, he said. --With assistance from Claudia Carpenter in London and Alan Bjerga and Terry Barrett in Washington. Editors: M. Shankar, Dan Weeks. To contact the reporter on this story: Luzi Ann Javier in Singapore at +65-6212-1304 or ljavier@bloomberg.net To contact the editor responsible for this story: James Poole at +65-6212-1551 or jpoole4@bloomberg.net;

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