Wheat futures surged Thursday as investors bet the USDA will cut its estimates for worldwide supply of the grain due to a rash of poor harvests this year and robust demand.In other commodity markets, energy prices climbed after the government posted a surprising decline in oil inventories. Gold and silver prices rose, while industrial metals finished mixed. The U.S. Department of Agriculture on Friday will post its latest figures on world supply of farm products at a time demand is running at the highest level in years because of strong global economic growth and an increasing use of biofuels.

Wheat supplies are of special concern given that Australia's harvest this fall, which is expected to be meager, will do little to replenish dwindling world stockpiles. One wheat crop after another this year has suffered either too much rain or too little, and inventories are headed for the lowest in more than two decades. Analysts expect the USDA to pare back its forecast for world wheat supplies.



Wheat futures for December, which had fallen nearly $1 a bushel since the month began, jumped to the daily limit permitted by the Chicago Board of Trade, settling up 30 cents at $8.83 a bushel.

Some traders also bet the agency will trim its U.S. soybean crop estimates and raise its corn crop projections slightly. November soybeans jumped 13.25 cents to close at $9.815 a bushel, while December corn futures fell 3.5 cents to end at $3.4375 a bushel.

In a sign of the strong pace of exports, the Commerce Department reported Thursday that the U.S. trade deficit fell to the lowest level in seven months, reflecting robust sales of wheat, soybeans and corn, as well as exports of industrial products. The deficit, or the difference between exports and imports, stood at $57.6 billion in August, down 2.4 percent from July.

A weak dollar has been a major boon to the country's export market, as foreign buyers shop for goods that to them seem relatively cheap. The greenback slid further against the euro, which bought $1.4194 late Thursday — slightly off its Oct. 1 high of $1.4284.

Precious metals prices climbed sharply as the dollar extended its decline and investors fled to the relative safety of gold and silver. December gold rose $10.70 to settle at $756.70 an ounce on the New York Mercantile Exchange, while December silver picked up 31.7 cents to $13.985 an ounce.

In other economic news, the Labor Department reported fewer workers filed for unemployment this week than expected, as claims dropped by 12,000 to 308,000. A healthy job market has been one of the economy's strong points, even as a housing market slump drags on.

Oil prices settled above $83 a barrel, the second-highest close on record, on bullish supply news. The Energy Information Administration reported an unexpected draw on crude inventories, which fell by 1.7 million barrels in the week ended Oct. 5. Analysts surveyed by Dow Jones Newswires had forecast an increase of 1 million barrels.

Light, sweet crude for November delivery surged $1.78 to settle at $83.08 a barrel — the highest since the front-month contract finished at $83.32 a barrel on Sept. 20.

Prices were also supported by a report of a strike at Chevron Corp. facilities in Nigeria and a report from the International Energy Agency suggesting that peak oil prices have done little to dampen demand.

Gasoline inventories swelled 1.7 million barrels, compared with analysts' forecast of a modest draw. Supplies of distillates including heating oil and diesel fuel dropped by an expected 600,000 barrels. Gasoline futures added 3.3 cents to end at $2.0666 a gallon, while heating oil futures rose 3.01 cents to $2.2473 a gallon.

Meanwhile, industrial metals finished mixed. On the London Metal Exchange, nickel, aluminum and zinc advanced, while lead, copper and tin slipped back. December copper traded on the Nymex lost 2.5 cents to end at $3.669 a pound.