INTERNATIONAL wheat prices fell about 3 per cent overnight, following the release of a US crop report.
In its World Agricultural Supply and Demand Estimates report, the US Department of Agriculture has increased its forecast of global wheat production by 3.7 million tonnes to 655.1 million tonnes.
Its estimate of world ending stocks also rose by 2.8 million tonnes to nearly 177 million tonnes.
The bearish outlook resulted in Chicago Board of Trade March 2013 wheat futures to fall 27 US cents to $US822 a bushel, or $A289 a tonne.
The USDA has increased its forecast of Australian wheat production by one million tonnes to 22 million tonnes in line with the Australian Bureau of Agricultural and Resource Economics and Sciences latest crop report.
The other major change was for China, where the wheat crop was increased 2.6 million tonnes to 120.6 million tonnes, based on the latest official estimates from the National Bureau of Statistics.