All Markets Jump Higher
Cheese markets exploded higher at the end of the spot trading session. Blocks gained 11 1/4 cents to close at $1.71 1/2 while barrels climbed 5 cents on the coattails of blocks. Barrels traded to $1.75. Butter also leaped higher as 18 loads traded hands, settling at $2.22 1/4, up 4 1/4. Grade A nonfat dry milk completed the cycle of all products being higher, settling at 72 3/4 up 1 1/4.
Class III milk markets were up 27 cents in November and December jumped 45 cents. 2018 prices climbed 17 to 31 cents from January through April, up 8 in May, even in June and 7 to 15 cents higher from July to the end of the year. January through May 2019 was 3 to 5 cents lower. Class IV markets had mixed results.
The USDA released their November Supply and Demand report on Thursday and caught the market by surprise regarding corn. The average trade guess for corn was 171.7 to 174 bushels per acre going into the report. Ultimately, the USDA released a yield number of 175.4 bushels, up 3.6 bushels from the October report. Ending stocks grew by 147 million bushels after 75 million bushel increases to both feed usage and exports. Soybean yield was unchanged from the October report at 49.5 bushels per acre and ending stocks declined 5 million bushels. At the close, December 2017 corn settled at $3.41 1/2, a new low for the December contract.