OREANDA-NEWS. February 12, 2015. Chicago wheat futures fell for a second session on Wednesday, pressured by a bigger-than-expected supply forecast by the US Department of Agriculture (USDA) and slow demand for U.S supplies.

Soybeans were slightly firmer after dropping almost 1 percent in the previous session, and corn futures continued to struggle in the face of ample world supplies.

"Wheat is the main market focus today with prices still pressured by the forecast on Tuesday from the USDA of larger-than-expected world stocks along with lower demand for US wheat in export markets following the strength in the dollar," said Frank Rijkers, agrifood economist at ABN AMRO Bank.

Chicago Board Of Trade March wheat fell 0.8 percent to \\$5.17-1/4 a bushel at 1109 GMT, having fallen 1.5 percent on Tuesday.

March soybeans rose 0.05 percent to \\$9.69-1/2 a bushel, having closed down 1 percent on Tuesday and March corn fell 0.3 percent to \\$3.86-1/2 a bushel, having slid 0.8 percent in the previous session.

The USDA in its monthly supply-demand report put global wheat ending stocks at 197.85 million tonnes, up from the average analyst estimate of 195.83 million and the largest supply since 2009/10 marketing season.

Fierce competition on the export market has cut overseas demand for US wheat, which is seen as expensive. The USDA cut its US wheat export projection by 2.7 percent to 900 million bushels.

"Corn is falling because of the USDA's forecasts of larger harvests in Ukraine and Argentina, which are both becoming more important players in global corn export markets," Rijkers said.

"Soybeans are seeing some support today from the USDA's lowered forecasts of US soybean stocks plus rising demand for US soybeans in export markets. However, the recovery in soybean prices is limited with the USDA still forecasting large world supplies."

The USDA's forecast of global corn production increased by 5 million tonnes due to larger harvest outlooks for Ukraine and Argentina, both of which have taken away export market share from the United States in recent years.

The USDA also cut its US soybean season ending stocks forecast to 385 million bushels from 410 million in January. But the figure is up from 92 million bushels at the end of 2013/14.

US soybean supplies were tighter than expected due to rising US domestic and export demand, the USDA said.