Cheese Market Pushes Even Higher
Light volume drove the cheese market higher once more on Friday. Blocks rising another penny and ¼ cents after two loads traded hands to finish at $1.65 and ¾ cents while barrels rose 5 and ¼ cents, closing the gap between barrels and blocks, and finishing at $1.62 after just two loads traded there, also. The last load to trade among all products was in Grade A nonfat dry milk where one mode moved the market a penny and ½ cents higher to finish at 83 cents.
Elsewhere, butter remained unchanged, no trades took place. It finishes once more at $2.34. Dry whey rises 1/4 cent to 44 and ¼ cents on bids alone. This was good news for the Class III market which moved a couple cents higher in its average from now through the end of the year to finish at $16 per cwt. Class IV markets rose a penny.
While the trade for product and milk was positive, that was not the case for grains. The USDA released their August world ag supply and demand estimates on Friday. Record yields are expected for corn with 178.4 pegged as the forthcoming national average. This is fully 2 bushels over the average guess and 1.6 bushels over the record setting 2017 yield.
Ending stocks grew by 132 million after upward revisions are made defeat use and exports. Soybeans were potentially the biggest surprise with yield rising 3.1 bushels versus the average trade guess have a 1 bushel increase. The August yield projection of 51.6 falls just 0.4 bushels short of the 2016 record yield and was the key factor in raising ending stocks to 785 million bushels. A new record by more than 200 million bushels. In the end, corn fell 11 cents, while soybeans retreated 42 cents, and soybean meal dropped $11.50 out through next summer.