"Corn was extremely bullish and wheat acres were very surprising to me," said eHedger analyst Reggie Griffith, responding to those reports. More specifically, USDA cut its estimate of domestic 2007 corn yields by 1.9 bushels an acre, and slashed its forecast of corn carryover stocks by nearly 360 million bushels, largely as a result of a 300 miillion bushel hike in expected feed/residual usage. "The season-average farm price for corn is projected at $3.70 to $4.30 per bushel, up 35 cents on both ends of the range, based on the sharp rise in both cash and futures prices that has been sustained during recent weeks," said the agency. USDA also ratcheted up its estimate of season-average cash prices by 65 cents for soybeans, 40 cents for grain sorghum, 25 cents for wheat, and 10 cents for barley/oats, leaving all of those forecasts - except soybeans - at unprecedented highs.
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