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Wheat, corn prices jump on new supply forecasts

Wheat, corn prices jump on new supply forecasts

Wheat and corn prices are sharply higher after the government released stockpile estimates that were lower than expected.
Both grains also are benefiting from concerns about hot weather that may affect crops in key farming states.
Wheat rose 5.1 percent Tuesday to settle at $6.72 a bushel. Corn was up 4 percent at $6.58 a bushel.
The U.S. Agriculture Department is predicting wheat stocks will fall 17 million bushels to 670 million bushels by May 2012. Investors had anticipated stockpiles of about 716 million bushels.
The government is forecasting corn supplies to total 880 million bushels before the fall harvest begins. That's also lower than expectations.
Other commodities were mostly higher.