Milk Prices Jump, Grain Prices Drop
The USDA shocked the world with an increase in yield for both corn and soybeans on Tuesday. Corn yields rose a half bushel to 169.9 bushels per acre, which stands as the second largest yield in history and lead the U.S. to the third largest crop in history by way of total bushels. Soybean yields were also raised a half bushel to 49.9 bushels per acre but, after factoring in increases to the demand side of the balance sheet, ending stocks were left unchanged at 475 million bushels.
As a result of these yield increases, corn prices fell 6 cents on average while soybeans dropped 9 to 10 cents. Soybean meal dropped roughly $3.50 through next spring.
Even better news for dairy producers on Tuesday was that Class III prices increased more than 30 cents in the 4th quarter, with the average price from now through the end of the year rising 25 cents to move back above $16 to $16.04 per cwt. Class IV markets remained unchanged.
In the CME spot trade session saw blocks finish unchanged at $1.64 while barrels rose 3 cents to $1.57. Butter rose 1 3/4 cents to $2.42 3/4 and grade A nonfat dry milk was unchanged at 82 cents.