WASDE Projects July Class III at $16
The USDA released the World Ag Supply and Demand Estimate (WASDE) report on Wednesday. The big numbers everyone watched were the corn and soybean ending stocks. Following the quarterly stocks and acreage report released on June 30, a bigger corn balance sheet and a smaller soybean balance sheet were expected. Both were delivered in accordance with those expectations.
For dairy producers, the WASDE report also provides a price projection for products and milk. In cheese that projection fell 5 cents from last month. The butter price rose 8 cents, nonfat dry milk rose ½ cent and whey prices fell 1 ½ cents. These price estimates lead us to a July Class III milk price projection of $16 on average, and a Class IV estimate of $15.85.
Looking forward into 2018 the average Class III price projected for the year dropped to $16.95, while Class IV projections rise 55 cents to $16.25.
All of this compares to a lower finish in the future market on Wednesday where the average Class III price through the end of 2017 finished at $16.71, and Class IV finished at $16.90.
The spot session was much more active. Butter dropped 2 ¼ to $2.58 ½, blocks rose 1 ½ cents to $1.63, barrels were up 2 to $1.43 and ¾ and grade A nonfat dry milk was down ¼ to 87 cents.