WASHINGTON (DTN)--U.S. wheat futures are called as much as 4 cents higher Dec. 10 after the U.S. Department of Agriculture lowered next summer's projected world carryover by 3 million tons (110 million bushels).

USDA actually nudged up world wheat "carry-in" (last summer) by 360,000 tons, but reductions in world production and additions to world wheat trade and feed usage allowed the agency to tighten up world ending stocks next summer.

Those ending stocks are now pegged at 169.49 million tons, down from 172.46 million a month ago and 198.58 million tons as last summer's "carry-in."

Most of the drop in stocks came in Russia, Ukraine and Australia.

USDA lowered Australia's wheat crop to 10.5 million tons, from 11 million a month ago, and still has room to move down to Australia's own 10-million-ton forecast.

In Argentina, USDA lowered the wheat crop to 13.5 million tons, from 14 million, and now stands at the high end of trade estimates from South America.

Brazil's wheat crop was lowered to 3.1 million tons, from 3.3 million last month.

But USDA added 200,000 tons to Canada's wheat crop from last month, now matching last week's official Ottawa estimate of 15.7 million tons.

USDA also added 200,000 tons to the European Union's wheat crop, now seen at 103.7 million tons.

China's wheat crop was left unchanged from last month, at 92 million tons. India and the former Soviet Union-eastern Europe area was also left unchanged.

What allowed USDA to lower world wheat carryover is the extra trade that's expected during this unusual wheat year. The European Union is now seen importing 8 million tons of wheat, up from 7.5 million last month and . Brazil is seen importing 7 million tons, up from 6.5 million last month.

Australia is seen importing 150,000 tons of wheat, up from 100,000 last month.

The U.S. is projected to import 2.18 million tons of wheat (80 million bushels), unchanged from last month.

USDA also lowered world wheat carryover by raising world wheat feed usage to 117.93 million tons, from 115.22 million last month and 109.37 million tons last year.

Expanded feeding of wheat is expected in Australia, Canada, the European Union and Southeast Asia.

In contrast, the U.S. is expected to feed 150 million bushels of wheat this year, unchanged from last month but down from 194 million last year and 304 million bushels from the 2000 wheat crop.

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