Al6-Uncaster Farming, Saturday, March 11, 2000
GRAIN. CATTLE, HOG,
&MILKBPP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Thursday, March 9,2000
Com
Daily Prices As of
Symbol:C
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
Total
03/08/00
Soybeans
Daily Prices As ofThursday, 9 March
Symbol:S
03/09/00
03/09 'OO
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
Total
03/08/00
Oats
Daily Prices As of
Symbol:o
03/09/00 MAR 00
03/09/00 MAY 00
03/09/00 JUL 00
03/09/00 SEP 00
03/09/00 DEC 00
03/09/00 MAR 01
Total
03/08/00
Weekly Dairy Market Outlook
By Ken Bailey
Penn State University
March 3,2000
-Government Buys Cheese
396,000 lbs process cheese
entered the CCC
-Cheese production seasonally
heavy
-1999
disappearance up 3.1 percent
-USDA announces round II of
the Dairy Options Pilot Program
The market received mixed
information this week. On the
one hand, process cheese entered
the dairy price support program
for the first time since July 1997
and cheese production is
seasonally heavy. On the other
hand. Grade AA butter prices
were relatively strong ($0 97-
$0 98 per pound) this week, and
block cheese prices gained a
penny a pound to $1.12. Also,
USDA reported this week that
demand for milk and dairy
products m 1999 was relatively
strong
January milk production in
2000 was up 4.7 percent in 20
major dairy states. Not
- Thursday, 9 March
Volume Open_lnt
64559 452359
Volume Open_lnt
49265 164475
- Thursday, 9 March
High
1134
1186
1170
1186
1260
1314
Open
1134
1184
1170
1186
1256
Volume Open_lnt
638 17749
surprisingly, so also was dairy
product production. American
type cheese production in January
was 312.7 million pounds, up 7.9
percent from a year ago.
Mozzarella cheese production
was 214.5 million pounds, up 5.3
percent. And, total cheese
production was 680.3 million
pounds, up 6.5 percent. Butter
production was 140.6 million
pounds, up 14.0 percent.
These are very strong rates of
gain. Remember, these are
estimates for January numbers;
they will be revised next month
when the real January numbers
are released.
According to USDA, process
cheese entered the dairy price
support program for the first time
since July 1997. For the week
February 28- - March 31, the
Commodity Credit Corporation
(CCC) had net purchases of 15.0
million pounds of nonfortified
nonfat dry milk from the West
and Midwest, and 396,000 pounds
of process cheese from the
Midwest.
commercial
Under this program, the CCC
stands ready to purchase
unlimited quantities of dairy
Last Chge
2204 t l2
2272 +lO
2356 +l2
2432 +l6
2490 +l4
2522 +2O
2550 +l4
2602 +2O
2650 +2O
2686 +2O
2652 +2O
2636 +6
Chge
unch
-2
-2
unch
+ 2
unch
Last
1124
1174
1154
1184
1254
1314
Low
1124
1170
1152
1184
1254
1314
Lean Hogs
Daily Prices As of
Date
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
Composite Volume
03/08/00 11905
Live Cattle
Daily Prices As ofThursday, 9 March
Date
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
Composite Volume
03/08/00 30936
Lumber
Daily Prices As ofThursday, 9 March
Date
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
03/09/00
Composite Volume Open_lnt
03/08/00 693 2626
able 1. Chicago Mercantile Exchange Prices, Weekly Averages
Cheese:
500 lb. barrels
40-lb. blocks
Nonfat dry milk;
Extra Grade
Grade A
Butter:
Grade AA 0.9733
Source: Dairy Market News, AMS. USDA
(http://www. ams. usda.gov/dairy/mncsAveekly. htm).
Table 2. NASS Weekly U.S. Average Survey Prices
Cheese
500 lb. Barrels 1/ 1.0799
40-lb. blocks 1.0963
Butter 0.8926
Nonfat dry milk 1.0088
Dry whey 0.1751
Source: Dairy Product Prices, NASS, USDA
(http://usda. mannlib. Cornell, edu/reports/nassr/price/dairy/1999/).
1/ Adjusted to 39% moisture.
products at CCC purchase prices.
These prices are linked to the
manufacturing support price for
milk at $9.80 per cwt at 3.5
percent milkfat. Currently, the
CCC purchase prices are $0.65
per pound for bulk butter, $0.68
per pound for no. 1 print butter,
$l.lO per pound for 40- and 60-
pound block cheese, $1.07 per
pound for 500-pound barrel
cheese, $1.1525 per pound for no.
5 process American cheese,
$1.1925 per pound for no. 2
process American cheese, and
Thursday, 9 March
Open High
5950 6090
6880 7000
6660 6745
6425 6490
5780 5810
5560 5600
5630 5650
5560 5600
0 6295
Apr 00
Jun 00
JulOO
Aug 00
Oct 00
Dec 00
Feb 01
Apr 01
Jun 01
Openjnt
52358
Open High
7250 7275
6935 6942
6990 6997
7267 7267
7370 7377
7490 7500
7690 7710
Apr 00
Jun 00
Aug 00
Oct 00
Dec 00
Feb 01
Apr 01
Openjnt
120344
Open High Low
Mar 00
May 00
JulOO
Sep 00
Nov 00
Jan 01
33230
34280
34380
33780
33150
33500
32880
33580
33900
33660
32990
3-Mar-00 25-Feb-00 18-Feb-00
1 1020 1.1000 1.0960
1-1160 1.1063 1.1080
1.0300 1.0300 1.0300
1.0300 1.0300 1.0300
26-Feb-00 19-Feb-OO 12-Feb-00
$l.Ol per pound for nonfortified,
$1.02 per pound for fortified, and
$1.1675 for instant nonfat dry
milk
USDA reported commercial
disappearance for milk and dairy
products for 1999. This
represents a proxy for demand.
The numbers are revealing in that
they suggest a favorable demand
picture.
Milk production in 1999 grew
3.3 percent and imports grew 3.4
percent. =
Chge
Last
Low
+ 130
+ 103
+35
+3B
-15
-13
-5
-5
-20
Chge
Last
Low
+23
+ 10
+2
+2
-3
7255
6932
6982
7257
7367
7485
7705
7220
6895
6965
7237
7355
7477
7690
+5
+ 10
Chge
Last
32510
33570
33890
33570
32940
33500
32620
33990
34360
33750
33150
33500
-230
+320
+370
+ 150
+ 170
unch
0.9363 0.8933
1.0758
1.1036
0.8810
1.0117
0.1783
Beginning commercial stocks
for January 1, 1999 were up 7.9
percent over a=
year ago. Consumption for
the year grew 3.1 percent on a
butterfat basis (this includes
commercial export sales). Ending
commercial stocks were up 16.4
percent by December 31, 1999.
Consumption for individual dairy
products was mostly favorable:
butter up 4.8 percent, American
cheese up 7.4 percent, other
Prev.
Prev.
Opcn_lnt
20475
17119
5497
5205
2522
1269
214
48
Volume
5384
5039
719
442
152
162
Prev.
Open_lnt
48335
33946
19362
10323
4467
2782
1129
Prev.
Volume
18606
6450
4005
799
292
186
598
Prev.
Prev.
Open_lnt
648
1404
438
108
28
Volume
248
380
56
11-Feb-00
1.0800
1.1100
1.0300
1.0300
0.9050
5-Feb-00
1.0769
1.1013
0.9119
1.0101
0.1806
1.0842
1.1106
0.9096
1.0112
0.1809
(Turn to Page A3l)