Class III Futures Up 17 Cents
It was a quiet day in dairy markets with butter rising 2.5 cents, blocks up a penny and barrels and powder remaining unchanged. However, the Class III market moved higher with the balance of all months from now through December averaging $16.86, up 17 cents.
USDA released their inaugural numbers for the 2017-18 grain balance sheets on Wednesday. In the end, few surprises were had. As a result of 4 million fewer expected acres in 2017 projected production fell by more than 1 billion bushels. Despite a sharp drop in production, export projections also fell by 375 million bushels. After factoring in a large beginning inventory, ending stocks only fell 2.11 billion bushels.
While corn inventories did not drop as much as some had expected, soybean inventories did not grow as much as some had anticipated. After adding 6 million acres to the projected soybean production base in 2017, total production was forcasted to drop after following the 2016 record yield of 52.1 bu/acre, Wednesday’s balance sheet was built on a trendline yield of 48 bu/acre. Following the shortened production, exports rose by 100 million bushels. In the end, ending stocks were 480 million bushels, just 45 million more than 2016 ending stocks.