Class III Gives, Class III Takes Away
Negative trade results were turned in on Thursday in both the dairy and grain spaces. Class III milk prices closed with double digit losses all the way out through June 2020. Fourth quarter 2019 ended with an average price of $18.33 per cwt. First half 2020 settled near $16.78.
Spot product markets watched cheddar blocks and barrels gain 4 cents and 1 ½ cents per lb. respectively. Blocks jumped to $2.12 per lb. while barrels settled out at $1.95. Dry whey moved 15 more loads Thursday and lost a penny to 30 cents per lb. Butter and nonfat dry milk were both unchanged on the day.
The USDA released their October version of the Supply and Demand report on Thursday. The trade was looking for a corn yield reduction to around 167.5 bushels per acre, while the USDA report came in at 168.4 bushels. Beginning stocks were reduced 331 million bushels following the lighter September 30th quarterly stocks report. Exports were lowered by 150 million bushels dropping the demand side of the balance sheet. In the end, the USDA estimates ending stocks at 1.93 billion, down from September’s report but 145 million bushels higher than the average analyst guess.
Corn closed 14 cents lower at $3.80 ¼ per bu. Soybeans settled a quarter cent lower on Thursday following a friendly Supply and Demand report. Yield was lowered a bushel to 46.9 bushels per acre. Ending stocks fell to 460 million bushels whereas the trade was expecting to see 521 million bushels.