U.S. cheese production continues to rise
EAU CLAIRE, Wis. (WEAU) - U.S. cheese production continues to rise. In March total cheese output was up just over 50 million pounds from a year ago and over 120 million pounds from February. Wisconsin cheese makers led the way with over 300 million pounds in March—90 million pounds more than second place California. Cheese production across the state was up for all varieties-American, Italian as well as for most specialty varieties. Idaho now ranks third in Cheese production with New Mexico fourth.
There appears to be some discontent in the food supply change. A report in the Wall Street Journal says big food buyers like Walmart and others are starting to fine their suppliers over late food deliveries or incomplete orders. But suppliers are saying tight labor conditions, supply constraints and higher freight costs are negatively affecting distribution channels. The bottom line is that the higher costs are filtering down to consumers causing higher food costs at the grocery store.
The push continues in Congress to lessen our dependence on fossil fuels. This past Friday a bipartisan bill was introduced in the House that would tax carbon emissions and give 70% of that revenue to the Highway trust fund while eliminating the federal gas tax. Observers say the bill would put a $35 per metric ton tax on fossil fuels like coal, oil and gas beginning in 2023 and increase by 5% every year after that.
The USDA will release its May World Agricultural Supply and demand Estimates report. Most grain traders don’t expect that report will do much to ease their ongoing concerns about tight corn and soybean supplies. But traders and the markets are also aware that this report is early in the season and the growing season is just beginning. For today’s report, the trade is looking at U.S. ending corn stocks for the current marketing year will be about 1.26 billion bushels. That would be the lowest in the past 7 years based on a corn crop this year of just over 15 billion bushels. For soybeans, the early estimate for ending U.S. stocks is 120 million bushels, also the lowest in 7 years. With the March planting estimate of 87.6 million acres in soybeans this year, traders expect the U.S. soybean crop to come in at 4.4 billion bushels. That report comes out at 11 o’clock this morning.
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