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WASHINGTON (AP) -- Americans should brace for higher food prices this year now that demand for corn has pushed U.S. supplies to their lowest point in 15 years.

Higher projected orders from the ethanol industry sent corn futures soaring Wednesday, as corn supplies became the latest commodity to plummet. Low levels of wheat, coffee, soybeans and other food staples have already sent prices surging on the global market.

As those reserves decline, U.S. food companies are warning of retail price increases.

The ethanol industry's projected corn orders this year have risen 8 percent, to 13 billion bushels, after record-high production in December and January, the Agriculture Department said Wednesday.

That means the United States will have a reserve of 675 million bushels left over in late August when this year's harvest begins. That's roughly 5 percent of all corn that will be consumed, the lowest surplus level since 1996.

The USDA report measures global supply and demand for grains, oilseeds and other crops. The department said its projections for wheat and soybean reserves remained unchanged at historically low levels.

The price of corn affects most food products in supermarkets. It's used to feed the cattle, hogs and chickens that fill the meat aisle. It is the main ingredient in Cap'n Crunch and Doritos. Turned into corn syrup, it sweetens most soft drinks.

The decline in reserves caused corn futures to surge, with prices rising 3 percent to settle at $6.98. Corn prices have already doubled in the last six months, rising from $3.50 a bushel to nearly $7 a bushel. Analysts expect the price increases to continue in coming months.

WASHINGTON (AP) -- Members of Congress sharply questioned Federal Reserve Chairman Ben Bernanke Wednesday over whether the Fed's policies are raising the risk of higher inflation in the months ahead.

Bernanke acknowledged that inflation is surging in emerging economies. But he downplayed the risks to the U.S. economy, even as lawmakers expressed concerns about rising gasoline and food prices.

Inflation in the United States remains low, Bernanke said. He blamed higher prices on strong demand from fast-growing countries such as China-- not the Fed's policies to stimulate the economy, including buying $600 billion worth of Treasury debt.

Bernanke acknowledged that inflation is surging in emerging economies. But he downplayed the risks to the U.S. economy, even as lawmakers expressed concerns about rising gasoline and food prices.

Inflation in the United States remains "quite low," Bernanke said. He blamed higher prices on strong demand from fast-growing countries such as China-- not the Fed's policies to stimulate the economy, including buying $600 billion worth of Treasury debt.

PORTLAND, Ore. (AP) -- Coca-Cola Co.'s fourth-quarter net income more than tripled on the acquisition of a bottler and stronger sales of its drinks worldwide.

The world's largest drink maker has been relying for some time on growth overseas as consumers in more developed markets limited spending and turned away from soda and toward healthier juices and teas.

However, the fourth quarter saw sales jump in North America, suggesting its domestic business may be catching up.

Coca Cola, based in Atlanta, reported Wednesday that it earned $5.77 billion, or $2.46 per share, for the quarter. That's up from $1.54 billion, or 66 cents per share, in the same quarter last year.

Excluding a $5 billion gain tied to the buyout of Coca-Cola Enterprises' North American operations and other items, the company earned 72 cents per share compared with 66 cents last year. That met the expectations of analysts polled by FactSet.

Coca-Cola bought the North American assets of Coca-Cola Enterprises in a deal that closed Oct. 2 worth $3.4 billion.

NEW YORK (AP) -- Auto and home insurer Allstate said Wednesday its net income fell 43 percent in the fourth quarter as an Arizona hailstorm in October caused its catastrophe losses to soar.

The results fell well short of Wall Street expectations and Allstate's shares tumbled 5 percent in extended trading.

In the final three months of last year, the company based in Northbrook, Ill., earned $296 million, or 55 cents per share. That's down from $518 million, or 96 cents per share, in the year-ago period.

Not including one-time items, the company's operating income was $271 million, or 50 cents per share. By that measure, analysts on average expected a profit of 91 cents per share, according to FactSet.

Allstate's catastrophe losses in the fourth quarter were $537 million, up 64 percent from the same period in 2009. It said the Arizona hailstorm accounted for $355 million of that amount. The storm brought winds as strong as 70 miles per hour to the Phoenix area in October and led to the temporary shutdown the Phoenix Sky Harbor International Airport. Golf ball-sized hail damaged roofs and downed power lines, some of which landed on homes and caused severe damage.

Allstate said the surge in catastrophe losses underscored its need to increase profitability in its homeowners segment. That means hiking prices to reflect the bigger payouts the company has been making in recent years as a result of weather-related losses, CEO Tom Wilson said.

Germany's Deutsche Boerse AG, the company that runs the stock exchange in Europe's largest economy, could soon take over the New York Stock Exchange.

NYSE Euronext Inc., which also operates exchanges in Europe, said Wednesday it is in advanced discussions about a possible merger with Deutsche Boerse, owner of the Frankfurt stock exchange.

The new company would have dual headquarters in New York and Frankfurt. The announcement came hours after news of a $2.9 billion merger between the London Stock Exchange and TMX Group Inc., parent company of the Toronto Stock Exchange.

Deutsche Boerse shareholders would hold 59 to 60 percent of the combined company. NYSE Euronext said it expected the two market operators to combine their businesses under a new legal entity incorporated in the Netherlands.

The New York Stock Exchange is already the world's largest stock market. But its parent, the $9.9 billion NYSE Euronext, isn't even the largest exchange company in the U.S. That title belongs to the $20 billion CME Group Inc. CME runs the Chicago Mercantile Exchange, where wheat, corn and pork belly futures are traded, as well as a number of other exchanges.

NEW YORK (AP) -- Cisco Systems Inc., the world's largest maker of computer-networking equipment, said Wednesday that its net income fell 18 percent in the latest quarter, and it provided a disappointing forecast for the current quarter.

Cisco's stock plummeted in after-hours trading, replaying its movement after the company reported its earnings for the previous quarter. The shares were down $2.14, or 9.7 percent, to $19.89.

Cisco said it earned $1.5 billion, or 27 cents per share, in its fiscal second quarter, which ended Jan. 29. That compares with $1.9 billion, or 32 cents per share, in the same quarter a year ago.

Excluding items and the cost of stock-based compensation, Cisco earned 37 cents per share, 2 cents more than the average forecast of analysts polled by FactSet.

Revenue at the San Jose-based company was $10.4 billion, up 6 percent from $9.8 billion a year ago. Analysts were expecting $10.3 billion.

The company warned late last year that sales to government customers were dropping off. Cisco CEO John Chambers said he expected that trend to continue. In addition, the company saw sales of one of its core products, network switches, decline by 7 percent over the previous year.

BEIJING (AP) -- Chinese officials said Wednesday they were preparing for a severe, long-lasting drought in several parched provinces, causing wheat prices to spike on the prospect of the world's largest consumer putting pressure on a global supply that's already squeezed.

Premier Wen Jiabao led a State Council meeting Wednesday on increasing grain production in the country that's both the world's largest wheat grower and largely self-sufficient in supply.

The U.N.'s food agency has warned that the monthslong drought is driving up the country's wheat prices, and now the focus is on whether China will buy more from the global market, where prices have already risen about 35 percent since mid-November.

The rising prices add to growing concerns in China about inflation, which the government sees as a potential source of social unrest. Average flour prices rose more than 8 percent in January from the previous two months.

Wheat futures were up Wednesday at both the Chicago Board of Trade and the Zhengzhou Commodity Exchange in China, where prices for September delivery hit a new high. They were at 3,051 yuan ($463) a ton Wednesday night.

State television broadcast images Wednesday of withered crops in cracked earth. State media have said the eastern province of Shandong faces its worst drought in 200 years and that the other affected provinces across the country's north and east are facing their worst in 60 years. Shortages of drinking water have affected 2.6 million people.

China's national weather bureau forecasts little if any rain for the Shandong region through Feb. 17.

NEW YORK (AP) -- These days, guns are more popular than guitars, at least when it comes to video games. The company behind "Guitar Hero" said Wednesday that it is pulling the plug on one of the most influential video titles of the new century.

Activision Blizzard Inc., which also produces the "Call of Duty" series, is ending the "Guitar Hero" franchise after a run of nearly six years.

The move follows Viacom Inc.'s decision in November to sell its money-losing unit behind the "Rock Band" video games. Harmonix was sold to an investment firm for an undisclosed sum. Harmonix, incidentally, was behind the first "Guitar Hero" game.

Game industry analysts have long lamented the weakness in the music genre, as they call it -- that is, the inability of the games' makers to drum up demand for the products after a surge in popularity in the mid-2000s. Music games are often more expensive than your typical shoot-em up game because they require guitars, microphones and other musical instruments. While extra songs can be purchased for download, this isn't enough to keep the games profitable.

Activision's shares tumbled after the announcement, but investors were more concerned with the disappointing financial forecast from the company than the demise of "Guitar Hero." As far as investors go, discontinuing an unprofitable product isn't the end of the world, even if "Guitar Hero" fans disagree.

BEIRUT (AP) -- Arab leaders are scrambling to boost salaries and subsidies in a bid to head off the kind of popular uprisings that have threatened the Egyptian president's hold on power and led to the ouster of Tunisia's leader after more than two decades.

But experts warn the moves might actually prolong or exacerbate the economic imbalances that helped spark the unrest in the first place.

Expected drops in tourism revenue and foreign direct investment -- key sources of revenue for many countries in the Middle East -- will only exacerbate the problems.

In the wake of the uprisings in Egypt and Tunisia, countries including Jordan, Yemen and Syria announced plans to ease the rage over decades of economic injustices by boosting subsidies on food and heating oil, increasing salaries and lowering taxes.

Egypt and Tunisia made similar promises as the countries' leaders came under siege.

The subsidies have not quelled the unrest, much of which is linked to larger issues such as anger over corruption and authoritarian rule. But many welcome even token attempts to lessen the burden in an autocratic region where poverty cuts across vast swaths of the population.

The Dow Jones industrial average rose 6.74 points, or 0.1 percent, to 12,239.8. The Dow has had only one down day in the last 11, on Jan. 28 when the protests in Egypt escalated.

The Standard & Poor's 500 lost 3.69 points, or 0.3 percent, to 1,320.88. The Nasdaq composite lost 7.98, or 0.3 percent, to 2,789.07.

Benchmark WTI crude for March delivery fell 23 cents to settle at $86.71 per barrel on the New York Mercantile Exchange. In London, Brent crude rose $1.80 to settle at $102.32 per barrel on the ICE Futures exchange.

In other Nymex trading in March contracts, heating oil rose 3.71 cents to settle at $2.7689 a gallon, gasoline gained 3.18 cents to settle at $2.5260 a gallon and natural gas added 0.4 cent to settle at $4.044 per 1,000 cubic feet.

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