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Corn and wheat prices fell Wednesday after a government report predicted that grain surpluses will be bigger than expected next year.

December wheat dropped 34 cents, or 5 percent, to finish at $6.2675 per bushel. December corn fell 4.25 cents, or less than 1 percent, to end at $6.4075 per bushel.

In its monthly report on global crop supplies, the U.S. Department of Agriculture estimated that farmers will have 866 million bushels of corn on hand at the end of next summer, a 29 percent increase over the agency's estimate last month.

The USDA also increased its estimate of next year's wheat surplus by 10 percent to 837 million bushels.

December wheat dropped 34 cents, or 5 percent, to finish at $6.2675 per bushel. December corn fell 4.25 cents, or less than 1 percent, to end at $6.4075 per bushel.

The prices of soybeans rose after the USDA slightly decreased its estimate of the 2012 soybean surplus, dropping it 5 million bushels to 160 million bushels. November soybeans rose 4 cents, or less than 1 percent, to $12.3950 per bushel.

Just a few months ago, many analysts were speculating that corn could hit a new high of $8.50 a bushel. But a series of reports this summer eased concerns that there would be a major shortage.

As a result, corn will likely trade between $6 and $6.50 a bushel in the near future, said Darin Newsom, an analyst with Telvent DTN. "I think we'll kind of slog around down here for a while," Newsom said.

In other trading, copper for December delivery rose 10.3 cents, or 3 percent, to end at $3.3935 a pound. January platinum gained $35.60, or 2.3 percent, to finish at $1,554.40 an ounce. December palladium rose $6.80, or 1 percent, to $611.10 an ounce.

Precious metals also climbed. Gold for December delivery rose $21.60, or 1 percent, to $1,682.60 an ounce. December silver gained 79.1 cents, or 2.5 percent, to close at $32.789.

Oil prices fell. Benchmark oil lost 24 cents to end at $85.57 per barrel on the New York Mercantile Exchange.

Heating oil rose 3.06 cents to finish at $2.9347 per gallon, gasoline futures rose 0.11 cents to $2.7487 per gallon and natural gas fell 0.127 cents to $3.489 per 1,000 cubic feet.

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Find Christopher Leonard on Twitter at http://twitter.com/cleonardnews

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