Crude oil supplies were down 3.2 million barrels last week to 316.0 million barrels. 600,000 barrels of crude were also added to the Strategic Petroleum Reserve.

The USDA's estimate for 2007 2008 U.S. ending stocks of:

Corn was reduced from 1.438 to 1.283 billion bushels.

Soybeans was increased from 140 to 160 million bushels.

Wheat remained at 242 million bushels.

Sugar was reduced from 1.978 to 1.950 million tons.

Cotton was increased from 9.40 to 9.70 million bales.

The USDA's estimate for 2007 2008 world ending stocks of:

Corn was reduced from 104 to 103 million tons.

Soybeans was increased from 47.4 to 49.3 million tons.

Wheat was increased from 110.4 to 112.5 million tons.

Cotton was increased from 59.2 to 59.6 million bales.

July corn closed up 13.75 cents at a new contract high of $6.18, supported by today's report and ongoing concerns about a small planting this spring.

July soybeans closed up 61.25 cents at $13.30 with talk that Argentine farmers may go back on strike again. Farmers have been protesting the government's increase in export taxes.

May cotton closed up 1.91 cents at 73.85 with high expectations that cotton acres will be lost to corn and soybeans this spring.

Livestock

The USDA increased its estimate of 2008 beef production from 26.4 to 26.6 billion pounds, up .6% from a year ago. The average steer price for 2008 was reduced from 90.5 to 90.0 cents per pound. June cattle fell 1.82 to 87.75.

The USDA increased its estimate of 2008 pork production from 23.1 to 23.5 billion pounds, up 7.3% from a year ago. The average price estimate for barrows and gilts in 2008 was reduced from 42.5 to 41.0 cents per pound. June hogs were down .72 at 70.55.

Orange juice

The USDA increased its estimate of Florida's 2007 2008 orange crop from 167 to 169 million boxes. The projected juice yield was kept unchanged at 1.63 million gallons per box at 42.0 degrees Brix. July orange juice closed down 4 cents at $1.1640.

Coffee

Late yesterday, Brazil's government estimated the upcoming coffee harvest at 44.2 million (60 kg) bags, but most private estimates are putting the crop above 50 million bags.

Sugar

July sugar closed up .50 at 12.93, the highest close in over three weeks, helped by rising energy prices.

Energies

The U.S. Department of Energy (DOE) said that crude oil supplies were down 3.2 million barrels last week to 316.0 million barrels. 600,000 barrels of crude were also added to the Strategic Petroleum Reserve. Gasoline supplies were down 3.4 million barrels while heating oil supplies were down 2.7 million barrels. June crude oil finished up $2.33 at a new contract high of $110.19.

The DOE also said that refinery use increased last week from 82.4% to 83.0% of capacity. Over the past four weeks, gasoline demand was up .3% from a year ago and distillate demand was unchanged from a year ago. June reformulated gasoline was up 2.43 cents at $2.7722.

Metals

June gold closed up $19.50 at $937.50 and July silver closed up 49.5 cents at $18.304 while the U.S. economy continues to struggle.

Currencies

Eurostat confirmed again that real GDP in the Euro area (13) was up 2.6% in 2007. In EU 27, GDP was up 2.9% in 2007.

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