Corn Balance Sheets Come as a Surprise
The USDA released their May supply and demand report on Friday. The biggest surprise came in the corn balance sheet. Yield was printed at 176 bushels per acre, a figure that many will argue is a bit high with the planting pace that were ore on thus far. With planted acreage currently forecasted at 92.8 million based on the Planting Intentions report and an above average rate of 8%, the total production of corn stands just north of 15 billion bushels
Ending stocks ultimately rose to 2.485 billion and a stocks to use ration of 16.9%. The highest guess on ending stocks out of private analysts survey was 2.387 billion, so today’s report will place a wet blanket over the head of the market for awhile. Soybean ending stocks were penciled out at 970 million bushels.
The butter market continued to add value Friday while cheese markets fell. Butter gained 3 cents on zero trades but did have 20 uncovered bids. Cheddar blocks lost 1 and three-quarter cents to $1.68. Barrels traded six times but fell 1 and a half cent to $1.71 even.
Both Grade A nonfat dry milk and dry whey settled unchanged at $1.06 and three-quarters respectively. Class III milk declined on average 2-10 cents per cwt. The second half closed the week at $16.60. Class IV ranged from 4 lower to 11 higher