But the prospect of increased grain and oilseed production in South American and Ukraine is undermining the potential of sustaining higher prices. And news this week indicates last year's harvest may have been more abundant than previously thought.
The government now estimates the amount of corn produced last year at a bit over 9 billion bushels, about what the trade was expecting. But projected corn on hand and estimates for ending stocks were higher than most trade guesses. The government's estimate of soybean production in 2002 was well above trade guesses, dampening prices in the soy complex which had been enjoying a run.
Winter wheat seedings of all varieties are projected to be 44.3 million acres. That's below trade expectations.