USDA released their much-anticipated World Agricultural Supply and Demand Estimates on Wednesday with commodity price results all over the board. The main watchpoints were exports, South American Production, and changes to domestic stocks. Corn values dipped 18 cents/bu in new crop as ending stocks were printed at 1.507 billion bushels, this was in comparison to the average analyst guess of 1.344 billion bushels. Old crop also fell despite a neutral stocks number. Soybeans saw no changes on either old or new crop balance sheets as was generally anticipated. No surprises were seen on South American production either despite weather hiccups. Moving forward, support seems more likely underneath soybeans and meal.
Grade A Nonfat was the weakest product today in the CME Cash Dairy Product Trade. Dry Whey gained ¼ of a penny while butter jumped 3.75 cents. Block and barrel cheese surged 4.25 and 6.50 cents.
Class III futures set new contract highs in second half 2021 as well as the 2022 calendar year with gains as high as 70 cents in the June contract. Class IV prices also finished higher to end the day.
Moving onto to the cattle and lean hog markets, August feeders led the way higher, settling at $150.52/cwt. August live cattle were up 27 cents to $122.32/cwt. June lean hogs added 85 cents to $112.02/cwt. June crude oil rallied 51 cents to $65.79/barrel.
