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USDA lowered its 2024 milk production forecast in its April WASDE, with cow numbers unchanged and slower growth in milk per cow. The Class III price forecast fell 95 cents to $16.20 per cwt and the Class IV forecast rose 30 cents to $20.40.
The same report raised US corn feed and ethanol use and lowered ending stocks by 50 million bushels to 2.1 billion, with the season-average farm price cut to $4.70 per bushel.
Lower milk output is supportive, but the lower Class III forecast signals weaker cheese and whey values. Smaller corn ending stocks with higher feed and ethanol use tighten the corn balance and support feed grain prices.
en.edairynews.comDamián MoraisApr 17, 2024After 136 past neutral report events, Milk (Class III) moved a median -0.1% over 5 sessions (43% higher; middle half -0.7% to +0.5%), and -0.3% over 20.
After 1,040 past bullish report events, Corn moved a median +0.5% over 5 sessions (62% higher; middle half -0.9% to +2.0%), and +0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
