October 18, 2023: Dairy Week in Review

USDA’s latest production numbers indicate we may have hit a floor in what we can expect for feed costs right now. The agency released its World Agricultural Supply and Demand Estimates report last week and cut yield expectations for both corn and soybeans. The average yield per acre for corn was decreased by 0.5 percent from September’s estimate to 173 bushels per acre, about six bushels below last year’s average yield. This resulted in a 70 million bushel drop in the estimated total production expected for this year’s harvest. At the same time, USDA cut beginning stocks by 91 million bushels and ending stocks by 110 million bushels. With a slightly higher concern about a smaller harvest, USDA increased its projected average price for corn by 5 cents to $4.95 per bushel.

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