By Jae Hur March 5 (Bloomberg) -- Wheat headed for its first weekly decline in four weeks as the dollar’s strength reduced demand for supplies from the U.S., the world’s top exporter. Futures in Chicago have lost 2.9 percent this week, the first loss since the week ended Feb. 5. The dollar has advanced 0.2 percent this week against a basket of six major currencies, making U.S. supplies more expensive. “The dollar’s influence on grains and other commodities is still strong,” said Toshimitsu Kawanabe, an analyst at Tokyo-based commodity broker Central Shoji Co. Wheat for May delivery added 0.4 percent to $5.04 a bushel on the Chicago Board of Trade at 2:16 p.m. Tokyo time. The most-active contract has dropped 7.3 percent this year, as of the close of trade yesterday, as global inventories expanded. U.S. exporters sold 101,585 metric tons in the week ending Feb. 25, down 73 percent from a week earlier, the Department of Agriculture said yesterday. Russia, the world’s third-largest wheat exporter, plans to ship 1 million tons of grains to Southeast Asia this year as it aims to become one of the top sellers to the region, an industry executive said last month. China, the world’s biggest wheat producer, will harvest 5.7 percent less of the grain this season compared with a year earlier because of adverse weather, according to a USDA agency. Wheat output in China will fall to 106 million tons in the year through June, down from 112.46 million the previous season, the USDA’s Foreign Agricultural Service said in a report posted yesterday. Output in the year starting in July may rise to 112 million tons as farmers increase planting, the report said. Brazil, Argentina Corn for May delivery rose 0.5 percent to $3.8475 a bushel after losing 1 percent yesterday. The price has dropped 1.1 percent this week. Soybeans for May delivery were up 0.2 percent at $9.435 a bushel after dropping 2.2 percent yesterday. The oilseed has fallen 1.8 percent this week, the first drop in four weeks. The soybean harvest in Brazil and Argentina will increase more than previously estimated this year after rain boosted yields, according to Informa Economics Inc. Brazil will collect 66.5 million tons, more than the 66 million estimated by the USDA in February and the 57 million harvested last year, Memphis, Tennessee-based Informa said yesterday in a report. Argentina will harvest 55 million tons, compared with 53 million estimated by the USDA and up from 32 million tons harvested last year, Informa said. The U.S. Department of Agriculture is scheduled to update its estimates on March 10 at 8:30 a.m. in Washington. To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net

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