Last Week's USDA Reports Results

The markets were closed Friday for the Fourth of July Holiday. So there are no new market prices to report, rather we will visit with Jackson Commodities Henry Kornegay about last week’s results from the USDA reports and their affects on the markets.
Kornegay: “Well, there was a lot of shedding of risk premium Monday after the report. It was extremely bearish. They came in the largest all crop area since 1997. If you look over at corn the acreage came in right at about the estimate. The beans were about 2 million acres higher. Wheat came in about 652,000 acres higher than estimates; mainly coming from spring wheat — which was about million acres higher of the estimate. The Durum was slightly under but it still ended up with a higher acreage on the wheat. From the U.S. standpoint, crop conditions are largely unchanged.”
Kornegay provides an update on the dairy prices.
Kornegay: “The government elevated its forecasts for dairy prices due to the chilly winter we had and a lower output in the Mid-West. Prices were up about .6 percent in May and USDA believes that prices could rise as much as 4 percent in this year. Class III milk is up about 12.5 percent this year — despite the selling pressure its seen in the past four days. It is a pretty strong market for the dairy farmers.”
He concludes with the cattle market.
Kornegay: “As a result of these lower grain prices, cattle feed is becoming cheaper. This is good for ranchers. Since the report, cattle prices have continued their upward charge. It appears for the short term they will continue to increase just based off of demand and cheaper feed prices.”