Wheat plummets on forecast of supply increase

AP News
Posted: Dec 11, 2012 3:20 PM

The price of wheat is falling after the government predicted U.S. inventories will increase by the end of next year's growing season in part because of weaker export demand.

Wheat for March delivery fell 3.2 percent to end Tuesday at $8.215 per bushel. Corn and soybeans also fell.

The U.S. Agriculture Department predicted wheat supplies will total 754 million bushels after next year's harvest. That's 11 million bushels higher than this year's production estimate.

Meanwhile, orange juice futures are up nearly 4 percent after the government cut next year's production forecast to 9.01 million tons. That is a 4 percent drop from October's forecast and slightly less than this year's production.

Prices for gold, silver, copper and natural gas are lower. Oil, gasoline and cotton are higher.