In a move that may push already inflated corn prices even higher, USDA lowered its forecast for 2007/2008 U.S. corn endings stocks by 155 million bushels to 1.283 billion, a greater reduction than expected. USDA said part of the reason for the decrease in corn ending stocks was increased feed and residual corn use and larger exports. USDA also raised its projected season-average farm price for corn to $4.10 to $4.50 per bushel.

USDA raised its soybean stocks forecast by 20 million bushels to 160 million, on expected lower residual use, and lowered its average farm price forecast to $10.00 to $10.50 per bushel.

Pork production forecasts were upped as USDA's most recent Quarterly Hogs and Pigs report revealed large hog inventories and a relatively large pig crop in the first half of 2008. The report forecast beef production to increase on continued strong cow slaughter and higher-than-expected cattle weights.