Wheat futures fell sharply Friday after the government forecast increased U.S production and a record global crop, while corn futures surged to a new high on continuing concerns about the weather.The U.S. Department of Agriculture (web|news) predicted global wheat production will rise to a record 656 million tons in 2008 and 2009 as historically high prices prompted farmers around the world to plant more of crop. "The high price did its job and got the acres," said Jason Ward, an analyst at Northstar Commodity.

Consumption is also expected to surge, keeping global supplies at historic lows. Even so, the 2008-09 season "is expected to be the first crop in three years to exceed total consumption," the USDA said.

The department said U.S. winter wheat production is expected to jump 17 percent this year to 1.78 billion bushels. Total U.S. wheat production is forecast to rise 16 percent to 2.4 billion bushels.



Those forecasts helped push prices lower Friday.

"They're setting the bar high here, and the market's responding to that," Ward said.

July wheat futures fell 18 cents to $8.04 a bushel on the Chicago Board of Trade.

Corn futures shot to another record high of $6.375 before easing to trade up 2.25 cents at $6.325 a bushel on the CBOT.

Traders have been pushing prices for the crop higher amid concerns about unusually wet weather throughout key growing areas in the Midwest. Another batch of rain showers moved through the region overnight and into Friday.

"In the central corn belt, where they'd like to be at least half planted by now, they're not able to," said Elaine Kub, a grains analyst with DTN in Omaha. "That's been the story for weeks, but it's exacerbated each day you get another storm moving across the Midwest."

July soybeans jumped 43 cents to $13.53 a bushel on the CBOT, while rice futures for July delivery added 35 cents to $22.70 per 100 pounds, also on the CBOT.

Most other commodities also advanced.

Gold for August delivery rose $3.60 to $885.70 an ounce on the New York Mercantile Exchange, while August silver added 0.5 cents to $16.875 an ounce and July copper futures fell 7.65 cents to $3.711 a pound.

Energy prices shot higher on the New York Mercantile Exchange.

Light, sweet crude oil futures for June delivery jumped to a new record of $126.20 in morning trading on the New York Mercantile Exchange before retreating to trade up $1.28 at $124.97 a barrel. June gasoline futures rose 3.92 cents to $3.177 a gallon.

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