Strong futures prices and their expected impact on the unsold portion of this year's crop have increased forecast prices of sorghum and corn by 10ยข at both ends of the range from $2.90 to $3.30/bu.

That's according to the monthly "Feed Outlook" issued by the Economic Research Service last week. Analysts there note, "Feed grain supplies for 2006-2007 are unchanged from November, and are down 16.4 million metric tons (mt) from 2005-2006. The year-to-year supply decrease reflects lower production and beginning stocks as compared with last year. Imports are expected to be higher in 2006-2007, but still account for only a small share of supply at the projected 2.4 million mt."
-- Wes Ishmael, BEEF Stocker Trends