Cheese Rebounds But Can't Outshine Grain
While cheese was able to rebound on Wednesday, the real story in the markets rests in the grain complex. The USDA released their September world ag supply and demand estimates revealing a new record yield for corn have 181.3 bushels, nearly five bushels over the 2017 record and moving ending stocks to 1.77 billion bushels.
National soybean yields followed suit rising 52.8 bushels, inflating us sending stocks to 845 million bushels. By the end of the day, corn prices had fallen 13 to 14 cents, leaving December corn at $3.52 and a half, just two and a quarter cent over the low set in July. Despite the bloated soybean inventories, news of potential future talks with China allowed prices to rise 8 cents in that complex.
Turning our attention back to the dairy product trade, block cheese rose a half a cent to finish at $1.63 while barrels rose 3 cents to return to $1.48 and a half. Whey prices rose another quarter cent to set a new record at 52 and a quarter cent while butter fell 2 and three-quarters to complete the trade at $2.19 and three-quarters.
Grade A nonfat dry milk did the same falling 2 and a quarter cent to finish at 87 and three-quarter cents. The average of Class III milk from now through the end of the year fell a penny to $16.21 while the average for Class IV for the balance of 2018 fell 26 cents to finish at $14.90.