USDA Anticipates Plenty of Feed Through 2018
The message from USDA on Thursday was that going forward there will still be plenty of feed.
Whereas private analysts expected a yield closer to 166, the USDA reported an average yield of 169.5 bushels to the acre. This keeps the ending stocks number close to 2.3 billion bushels and expresses ongoing availability of corn throughout 2018.
The story for soybeans was no different. The average guess by private analysts was at 47.5 bushels to the acre, a half bushel reduction from the 48 number that has been used in previous reports. The USDA surprised once more and came out with a 49.4 bushel to the acre average expectation.
In the wake of that, soybean mean dropped 12.5 per ton, soybeans were down 33 cents per bushel and corn finished 15.25 cents lower
The large movement and volatility in the grain markets overshadowed the quiet of the CME spot market.
Butter did not changed and finished $2.65 per pound. Blocks rose 2.5 cents to $1.705 per pound, and Barrels fell 3.75 cents after yesterday’s big jump up to finish at $1.555 per pound. The spread now widens back to 15 cents between blocks and barrels. Grade A nonfat dry milk also was unchanged, it had 3 trades and finished at 85 cents.
Class III milk was down 10 cents as a result of the falling barrel market. The average price from now through December remains at $16.80 per cwt. Class IV traded very little and finished at the exact same price.