In its monthly update, the inter-governmental body saw total grains production at a record 2.292 billion tonnes, up 5 million tonnes from its prior projection.
Grain prices have risen sharply this year with Chicago corn futures climbing to an eight-year high this month.
Russia is prepared to stop interfering in the regulation of grain exports when the market stabilises, the Interfax news agency cited Agriculture Minister Dmitry Patrushev as saying on Tuesday.
The USDA only minimally trimmed its US end-of-season stocks outlook and raised its export forecast by less than many traders had anticipated following record-large sales to China.
Argentina said on Tuesday it lifted a 30,000-tonne-per-day limit recently placed on corn exports, which had caused farmers to go on a sales strike in protest.