RCMA Establishes Six-Member Task Force
BATAVIA NY Tift Reg - - ever y^i n g possible to ensure a of the long-standing problems fac
ional Cooperative Marketing Profitable future for dairy farmers ing the Northeast dairy industry,
Agency (RCMA). a 22,000 mem- and f* 16 *°“ sands of other people
ber dairy farmer organization, employed directly or indirectly in
appointed six people to a “Dairy dauY Vjdushy here in the
Issues” investigative task force Northeast. Zuber stated that these
during a meeting of the RCMA s .** P 6o ?!® will devote as much
Board of Directors, Friday, July 7, a s needed to look into some
1989
Dick Langworthy of Agri-
Mark, Inc. in Methuen, MA will
chair the group assigned to look at
such dairy issues as'the value of
manufacturing milk, producer
price alignment among Federal
Milk Marketing Orders, and long
term RCMA pricing strategics.
Other members of the RCMA
Task Force include: Clyde Ruther
ford, Dairylea Cooperative, Inc. in
Syracuse, NY; Mike Donovan,
Eastern Milk Producers Coopera
tive in Syracuse, NY; Jim Frahcr,
Atlantic Dairy Cooperative in
Southampton, PA; Joe Hess,
RCMA Region 17 Director from
ML Joy, PA; and Mcrt Evans,
Allied Federated Cooperative.
The group will report back to the
RCMA Board of Directors on
August 11, 1989.
According to RCMA President,
Bill Zuber, “RCMA is doing
Weather Dominates Market Price Moves
NEWARK, DE “Corn,
wheat and soybean prices have
been driven by weather this past
month,” says Cart German. Uni
versity of Delaware Extension
crops marketing specialist
"The Eastern com belt has been
inundated with too much rain in
contrast to parts of the Western
com belt,” he says, “which are in
need of timely rains for com that
has reached die tasseling stage.”
German says severe drought
conditions do not seem likely dur
ing the present cropping season.
However, portions of the growing
region may experience reduced
yields due to a lack of timely
rains, while the excessive rain in
the Eastern com belt has reduced
yield prospects in that region.
“As in most weather markets,”
“We are trying to assist the milk
dealers here in the Northeast so
that they may, in turn, be able to
help our members and keep them
in the dairy business,” explained
he says, “only time will determine
the eventual outcome for crop
yields. But farmers still need to
have marketing strategies.”
Considering the general condi
tion of crop development in the
United States, the smart thing to
do now is to place further 1989
crop sales on hold, German says.
The weather during the month of
July and possibly August will help
determine the eventual direction
of crop prices.
Trading ranges for com, wheat
and soybeans are likely to be with
in 20 to 30 cents of their current
levels. December com is expected
to trade from $2.50 to $2.80,
November soybeans from $6.50 to
$7.00, and September wheat from
$3.95 to $4.15 per bushel.
'The bottom line in the event of
To Investigate
Zuber. “After all, our main goal is
to strengthen all facets of the dairy
industry.”
The Regional Cooperative
Marketing Agency is a
22.000-mcmber organization run
by and for dairy farmers in 11
timely rains in the Midwest,” the
specialist says, “is to expect these
prices to break toward the bottom
or below these trading ranges. If
the rains don’t come, then we’ll
see higher prices.”
Regarding the small-grain
harvest, German says if wheat is
harvested and stored, producers
may want to consider protecting
the price risk with September put
options or a hedged position in the
futures market This is because the
spring and Canadian wheat crop,
which will be harvested in Sep
tember, is said to be in great
shape.
Another factor to consider,
which may prove to be price
depressing for wheat is the wheat
SMEK. IT’S FITNESS
YOU CAN MONK.
Middle Atlantic
Milk Marketing Aaaoc
Lancaster Farming, Saturday, July 29,1989-C5
Dairy Issues
Northeastern states. RCMA col
lects, from the marketplace, a
Class I fluid milk differential over
the minimum Class 1 price set by
the Government, and RCMA
returns this money in the form of
“Over-Order Premiums” to its
farmer-members.
catalog, which is scheduled to be
released when the national aver
age wheat price hits the $4.10 per
bushel mark, German says.
Finally he notes that producers
with profitable positions in
options may want to consider
offsetting those positions. But
producers must keep current with
market trends to make their best
decisions. -
“One can be sure that seizing
upon any opportunity to make
additional cash sales in the present
market will require keeping
abreast of daily market develop
ments,” German says.
For further information on
marketing your crops, call Carl
German at 431-1317.