The global sugar surplus in the 2013-14 season will be 12 percent smaller than initially estimated as leading producer Brazil, Russia and the European Union have smaller-than-forecast crops, said Kingsman SA.

Read more: Kingsman Cuts 2013-14 Sugar Surplus by 12% on Brazil, Russia, EU

West Texas Intermediate headed for its biggest weekly drop in more than a month amid signs of rising U.S. oil inventories and a global economic slowdown.

Read more: WTI Heads for Biggest Weekly Decline in a Month on Supply

Soybeans headed for a fourth weekly advance in Chicago, poised for the longest run since February, as sustained demand from China drained U.S. inventories.

Read more: Soybeans Head for 4th Weekly Gain as China Demand Shrinks Stocks

Gold climbed, snapping two days of losses, after data showed China's manufacturing contracted in May for the first time in seven months, boosting demand for the metal as a protection of wealth as equities fell.

Read more: Gold Gains on Demand for Protection as Stocks Drop on China PMI

Soybeans touched a six-month high in Chicago on signs demand will increase in China, the world's biggest importer of the oilseed, even as U.S. supplies shrink before the next harvest.

Read more: Soybeans Touch Six-Month High on Lack of Supply Before Harvest

Commodities fell for a third day, paced by declines in copper and oil, as manufacturing in China unexpectedly shrank for the first time in seven months and the head of the Federal Reserve hinted that stimulus may be tapered.

Read more: Commodities Drop on Double Blow of China Data, Bernanke R

(Reuters) - The dollar fell against the euro for a third day on Wednesday as investors trimmed their bets on the currency before testimony from the U.S. Federal Reserve Chairman Ben Bernanke.

Read more: Dollar declines vs euro before Bernanke testimony

Wheat rose the most in almost two weeks on signs of increased overseas demand for U.S. supplies and more use in feed rations. Corn jumped on increased Chinese purchases and soybeans gained.

Read more: Wheat Climbs on Improved Demand for U.S. Crop; Corn, Soy Gain