CBOT booklet explain^
CHICAGO, HI. - This year Such seemingly unrelated
the price of soybeans rose factors as the weather last
above $lO a bushel for only Summer, the government
the third year in history, soybean embargo of 1973 and
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DAVID WINDLE and h.s TWO YEAR OLD HEIFER
Born: August 28,1974
Sire: Keystone Fleetfoot
Dam: Springlea Ivanhoe Star Tana
Freshened: April 1,1977
Tulip has averaged 101.6 lb. milk and
3.2 per cent fat in her first three
months on test.
Her estimated 305 day record is
25,578 lbs. milk and 812 lbs. fat. She
has recently been bred to Paclamar
Triune Complete on her fourth heat
period.
For More Inf ormation....
Call or Write Your Nearest Agri-King
Southeastern Penna.
George F. Delong
Regional Manager
225 West Woods Drive
Lititz, PA 17543
Call Collect 717-626-0261
Lebanon Co.
Melvin Herr Henry DeLong, Jr. Aldus R. Kin* Marvin Meyer
RD2 New Holland, PA 17557 RD280x69 RDI,Box67A RD2,80x157
Ph: 717-354-5977 Peach Bottom, PA 17563 Atgien, PA 19310 Annville. PA 17003
Phone: 717-548-3471 Phone: 215-593-5952 Phone: 717-867-1445
Eastern Lancaster Co.
AGRI-KING SALUT
Serviceman
Northwestern Lancaster Co.
Earl B. Cinder Ben Greenawalt Roger Heller Thomas Heist
RD2, Manheim, PA 17545 RD2 Conestoga, PA 17516 RDI, Robesonia. PA Mam Street
Phone:7l7-665-3126 Phone-717-872-5686 Phone 215-693-6160 Alburtis, PA 18101
Phone 215-965-5124
Southern Lancaster Co.
| 1 [ AGRI-KING
I TO PROFIT ..
soybean buyers’ fears of
further export controls this
year are among the real
forces that were behind the
price of soybeans - not ex
cessive speculation in the
futures markets - according
to a new 13-page booklet
released Tuesday by the
Chicago Board of Trade.
What in the World Is
Happening to the Price of
Soybeans? And Why? is a
careful analysis of the
supply and demand factors
affecting the price of
soybeans in 1977. Yet, far
from an economic treatise,
the booklet explains this
year’s crunch in soybean
supplies in terms meaningful
to America’s food producers
and consumers.
The booklet begins with
the importance of soybeans
in today’s world markets,
then follows with a
discussion of the factors of
supply, demand and the
effects of the market on
price. Some of the major
points covered are:
High soybean prices seem
to make more sense when
viewed as a result of the
increasing popularity of
soybeans as an excellent
source of protein and oil.
Soybean meal is a major
ingredient in most livestock
Southwestern Lancaster Co. Northeast Berks Co.
astern Penna.
soybean price factors
feeds. Also, soybean meal
and soybean oil are finding
their way into more and
more processed foods and
industrial uses.
Soybean supplies are
affected each year by
carryover, acreage planted,
weather and foreign
production.
Demand is seen as a
delicate, yet logical, balance
between price, foreign
consumption and
availability of substitutes.
Aside from straight
supply-demand factors, the
expectations of suppliers,
buyers and speculators play
an important role in
determining the short-term
price of soybeans. The
booklet explains how ex
pectations of high prices
become a self-fulfilling
prophesy as the marketplace
attempts to match supply to
demand.
Brazil’s emergence as a
major agricultural power,
especially in the world
soybean market, is
becoming a major factor in
the pricing of soybeans in
Chicago. Brazil’s production
was highly uncertain during
the time prices skyrocketed.
Also,'slight changes in the
value of the U.S. dollar in
relation to foreign curren-
Lancaster Farming. Saturday. July 16. 1977
cies play a vital role in
foreign demand for our
soybeans.
In recent weeks, the
balances of world supply and
demand tipped sharply in a
new direction. Soybean
processors reacted to the
high prices by buying fewer
soybeans and cutting back
production of soybean meal
and soybean oil. Soybean
supplies also appeared to
improve as Brazil an
nounced a larger-than
expected crop. In addition,
U.S. government reports
indicated a large crop of Copies of What in the
soybeans may be harvested World Is Happening to the
in the U.S. next fall. Price of Soybeans? and
Just as in the price surge why? are available on
earlier this year, the world’s request from: Literature
buyers -and sellers of Services, Dept. SB, Chicago
soybeans have adjusted Board of Trade, LaSalle at
price to balance supply with Jackson, Chicago, m. 60604.
Order
pnce:
ALEXANDRIA, Va. -
Market administrator
Joseph D. Shine this week
announced a base milk price
for June 1977 of $10.24 per
ES
"TULIP"
[h & Northampton Co.
Lehii
Chester Co.
William Windle
RDI, Atglen, PA 19310
Phone:2ls-593-6143
demand. The result, based
on the new factors, was a
rapid price decline.
Soybean prices on the
futures markets closely
follow cash soybean prices.
Uneasiness on the part of
soybean processors and
producers resulting from
uncertain supply and
demand is mirrored by the
volatility evident in recent
soybean futures trading.
Futures markets merely
reflect the myriad of
economic forces behind
soybean prices; they do not
control them.
4 milk
$10.24
hundredweight for the
Middle Atlantic Marketing
Order and an excess milk
price of $8.44. The weighted
average June price is $10.04
and the butterfat differential
for the month is 11.6 cents.
The June base milk price is
up 18 cents from May and is
14 cents higher than die June
1976 base price. Order No. 4
prices are announced for 3.5
per cent milk f.o.b. plant
location within 55 miles of
Philadelphia, Pa. and also
within 75 miles from the
nearer of Washington, D.C.
or Baltimore, Md. There is a
6-cent direct-delivery dif
ferential applicable to
producer milk received at
plants located within 55
miles of Philadelphia.
Shine reported that June
producer receipts totaled
472.4 million pounds, a drop
of 3.5 per cent from May on
an average daily basis, but
5.7 per cent above a year
ago. Class I producer milk
accounted for 54.45 per cent
of toal June deliveries,
compared to 53.29 per cent in
May and 55.21 per cent last
year. Base milk represented
89.17 per cent of total June
production. A total of 8030
dairy men supplied Middle
Atlantic handlers during the
month and the average daily
delivery per producer was
1961 pounds, 7.3 per cent
above the June 1976 daily
average.
Middle Atlantic Order pool
handlers reported Class I in
area milk sales of 7.23
million pounds per day
during June. When ad
justment for variation in
calendar composition is
made, June fluid sales were
down seasonally by 4.8 per
cent from May but were 0.9
per cent above last June.
have a
nice weekend...
talk to a neighbor
ff
IT
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