The World Agricultural Supply and Demand report was bullish for corn and soybeans. With there being a relationship between corn and milk, the strong of corn likely provided some strength to milk futures. USDA reduced corn yield by 2.9 bushels per acre to 172.50 bushels per acre and reduced production to 13.944 billion bushels with ending stocks at 1.219 billion bushels which is considered tight. Soybean yield was reduced by 1.4 bushels per acre to 50.5 bushels per acre. The estimate if for ending stocks at 200 million bushels which is also tight. USDA reduced milk production this year by 300 million pounds to 226.5 billion pounds which would be just 200 million pounds above 2021. Production next year was reduced 500 million pounds to an estimate of 228.8 billion pounds.
USDA kept their estimate for cheese prices unchanged this year at $2.0750 and reduced next year's average to $1.97. Dry whey price was left unchanged this year at 61 cents per pound and left unchanged next year at 48.50 cents per pound.
USDA left butter increased butter price 6.50 cents from their August estimate to an average of $2.85 and increased the 2023 estimate a penny to $2.3850. Nonfat dry milk price was raised 3.50 cents to an average of $1.69 and raised 5.50 cents to an average of $1.5050 for 2023.
