WASDE Report Drives Corn Market Higher
The USDA's release of the World Agricultural Supply and Demand Estimates report gave support to the corn markets. Corn added 6 1/2 cents in the March contract and closed at $3.85 3/4. December 2018 added 4 cents and settled at $4.10 1/4. Pushing the market was an increase in exports of 175 million bushels and higher domestic usage of 50 million bushels. Ending stocks fell 225 million to 2.127 billion. World corn ending stocks dropped 3.92 million metric tons. Argentinian corn production was adjusted 3 million metric tons lower.
Soybean ending stocks for the U.S. grew by 25 million to 555 million bushels. World soybean ending stocks were 3.74 million metric tons lower mainly off of a reduction in Argentinian production of 7 million metric tons to 47 million metric tons. Brazil's soybean production was up 1 million metric tons to 113 million metric tons.
CME spot product markets saw blocks up 2 cents to $1.58 and butter down 1 1/4 to $2.21 3/4 per pound. Barrels and grade A nonfat dry milk were unchanged at $1.51 and 64 3/4 cents per pound, respectively.
Class III prices were 5 to 7 cents higher March through June while the second half ranged from 3 cents lower to 5 cents higher. Class IV markets were unchanged.