January 2011 soybeans were trading 61 cents higher per bushel, and March corn was trading 24 1/2 cents higher today after the U.S. Department of Agriculture released its Crop Production and World Agricultural Supply and Demand Estimates.

The USDA reduced the carryout of U.S. 2010 corn from 832 million bushels down to 745 million bushels. The decrease from the December estimates recognized a 1.5 bushel per acre reduction in the national yield and a 100-million bushel increase in ethanol production.

Soybean carryover stocks in the United States were cut to 140 million bushels from 165 million bushels.

Analysts anticipated the report would confirm that U.S. grain stockpiles are the lowest in years, darkening hopes for any quick relief from surging global food prices, Reuters reported.

World grain markets have been surging on bad weather and rising demand. With this backdrop, governments around the world are increasingly worried about food inflation after the UN Food and Agriculture Organization recently said international food prices have topped the previous record set in 2008.