Al6-Lancaster Farming, Saturday, May 13, 20(X
GRAIN. CATTLE, HOG,
&MILKBFP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Thursday, May 11,2000
Daily Prices As of
Com
MAY 00
JUL 00
SEP 00
NOV 00
DEC 00
JAN 01
MAR 01
MAY 01
JUL 01
SEP 01
DEC 01
DEC 02
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
Total
05/10/00
Daily Prices As of
Soybeans
MAY 00
JUL 0 0
AUG 00
SEP 00
NOV 00
JAN 01
MAR 01
MAY 01
JUL 01
NOV 01
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
Total
05/10/00
Daily Prices As of
Oats
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
MAY
JUL
SEP
DEC
MAR
MAY
Total
05/10/00
Table 1. Chicago Mercantile Exchange, Weekly Averages
5-May-00 28-Apr-00 21-Apr-00 14-Apr-00
Cheese.
500 lb barrels
40-lb. blocks
Nonfat dry milk
Extra Grade
Grade A
Butter
Grade AA 1.1658 1.0833
Source: Dairy Market News, AMS, USDA
(http://wwwams.usda.gov/dairy/mncs/weekly.htm).
Table 2. NASS Weekly U.S. Average Survey Prices
29-Apr-00 22-Apr-00 15-Apr-00 .8-Apr-00
Cheese:
500 lb. Barrels
1/ 1.0641 1.0672
40-lb. blocks 1.0977 1.0961
Butter 1.0332 1.0152
Nonfat dry milk 1.0062 1 0099
Dry whey 0 1779 0 1763
Source ■ Dairy Product Prices, NASS, USDA
(http://usda mannhb cornetl.edu/reports/nassr/pnce/dairy/1999/)
1/ Adjusted to 39% moisture
- Thursday, 11 May
Volume Open_lnt
69127 489393
Thursday, 11 May
Volume Qpen_lnt
63806 197709
- Thursday, 11 May
Open High
00 1290 1290
00 1230 1236
00 1272 1274
00 1320 1320
01 1372 1376
01 1416
Volume Opon_lnt
1151 17904
1 1000
1.0925
1.1000
1.1005
1.0300 1.0300 1.0300 1.0300
1.0300 1.0300 1.0300 1.0300
Last Chge
2376 +lO
2446 +4
2526 +lO
2576 +l2
2616 +lO
2656 +l2
2692 +l4
2740 +lO
2762 +6
2680 +lO
2704 +lO
2694 -4
LOW
1282
1230
1264
1310
1372
1416
Last
1284
1232
1270
1314
1376
1416
1 0688
1 0975
1.0750
1 1030
1.0250
1.0525
1.0723
1.0985
1.0529
1 0102
0.1766
1.0809
1.0986
1.0840
1.0090
0.1770
Lean Hogs
Daily Prices As of
Date
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
Composite Volume Open_lnt
05/10/00 11254 66902
Live Cattle
Daily Prices As of
Date
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
05/11/00
Composite Volume Open_lnt
05/10/00 16132 116890
By Ken Bailey
Penn State University
May 5, 2000
April Class and
Component Prices
Announced
■Class 111 once is $9.41 per
cwf
levels
■CME butter showm.
U.S. wblessness rate at 30-
year low!
A number of interesting
reports were released today
USDA announced the class and
component prices for April 2000.
And, the Bureau of Labor
Statistics announced today that
the U.S. unemployment rate fell
in April to 3.9 percent.
The Class I mover for April
was announced on March 17 at
$10.93 per cwt with a base skim
milk price of $7.70 per cwt. A
local Class I differential is added
to the Class I mover to determine
the Class I price
On May 5 USDA announced
the rest of the class prices that are
applicable to each of the 11
federal milk marketing orders.
The Class II price for April is
$12.10 per cwt with a Class II
butterfat price of $1.1422 per
pound.
The Class 111 price is $9.41
per cwt with a Class 111 skim milk
price of $5.63 per cwt. And the
Class IV price is $11.38 per cwt
with a Class IV skim milk price
of $7.68 per cwt.
These class prices along with
the utilization rates in each
federal order (i.e., how much milk
is used for Class I purposes) will
be used to compute the pool
values and the Producer Price
Differentials, or PPD. The PPD’s
are unique for each order and are
equal to the pool value less the
Class 111 price of $9.41 per cwt.
Farmers shipping milk into
orders that use multiple
component pricing will also see
component prices on their milk
checks. The April component
values are butterfat, $1 1352 per
pound; nonfat solids, $0 8537 per
pound, and protein, $1.7399 per
-Thursday, 11, May
Open High
Jun 00
JulOO
Aug 00
Oct 00
Dec 00
Feb 01
Apr 01
Jun 01
JulOl
Thursday, 11
Open High
6842
6890
7140
7287
7430
7640
7500
Jun 00
Aug 00
Oct 00
Dec 00
Feb 01
Apr 01
Jun 01
pound. These component values
are directly related to the
following NASS April average
commodity prices: butter,
$1.0449 per pound; nonfat dry
milk, $1.0078 per pound; cheese,
$l.lOll per pound; and dry
whey, $0.1765 per pound.
The most surprising number
released was the April Class 111
price of $9.41 per cwt. This was
directly related to a NASS cheese
price of $1 1011 per pound. This
raises some important questions.
First, has use of a national NASS
survey resulted m lower prices
than if we had relied on the cash
market at the Chicago Mercantile
Exchange? Second, has use of
the new Class 111 formula under
federal order reform resulted in a
lower price when compared to the
old Basic Formula Price? The
January through April data
strongly suggest that is the case.
USDA will be holding hearings
on this question next week.
Cheese prices at the Chicago
Mercantile Exchange were
relatively stable this week. Barrel
cheese prices were $l.lO per
pound. Block cheese prices
fluctuated at $1.09-$ 1.10 per
pound. Process and block cheese
prices are stuck at support price
levels. During the week of May
1-5, the Commodity Credit
Corporation purchased a million
pounds of Midwestern cheese
under the dairy price support
program (332,909 lbs of block
cheese, and 673,200 lbs of
process cheese).
streneti
The biggest surprise on the
Chicago Mercantile Exchange
was the butter market. Grade AA
prices rose from $1.13 per pound
on Monday, May 1 to $1.2375 on
Honey Producers To Meet
MILLERSVILLE (Lancaster
Co.) The Lancaster County
Honey Producers will conduct
their regular meeting on May 16
at the home of Alva Martin at
440 A Stehman Church Rd., Mil
lersville.
Hives will be opened at 6:30
p.m. and business meeting and
. Prev.
Last Chge Vo , ume
6230
3140
1213
343
182
108
36
Low
7275 -7
7200 unch
6852 -S
5937 -10
5707
5735
5597
6325
6140
. . PreV -
Last Chge Vo , ume
-17 8200
-S 5006
Low
6825
6895
7165
7302
7445
7650
7490
6800
6855
7120
7280
7427
7635
7490
6842
6907
7177
7320
7457
7665
7510
+ 10
+5
-15
-15
+2O 1353
+2O 757
+ 10 75
t-5 54
-10 685
Friday, May 5 USD A reports
that ice cream production is
seasonally increasing, which
limits the availability of cream for
churning purposes. In addition,
USDA reports that buying interest
is quite strong following the
Easter Holiday,
And finally, some good news
for struggling dairy farmers. The
Bureau of Labor Statistics (BLS)
reported today that the April
unemployment rate edged down
to 3.9 percent
(http://stats.bls.gov/news.release/
pdf/empsit.pdf). According to the
BLS, "this is the first time the rate
has been below 4.0 percent since
January 1970." The nonfarm
payroll employment increased by
340,000. In addition, the average
hourly earnings rose by 6 cents in
April and by 3.8 percent over the
year.
This report has some good
implications for the U.S. dairy
industry. First, the lower the
unemployment rate, the more
workers there are with paychecks
that they can use to eat outside the
home. That translates into greater
sales of dairy products like cheese
and butter. The only concern
with this report, however, is that
the unemployment rate is so low
that it may trigger the Federal
Reserve to raise interest rates a
quarter to a half percentage point
next week to fight potential
inflation. But many analysts
argue that that may happen
anyway.
For more information on
market and federal order data, see
my Penn State Dairy Outlook
website at:
http://www.aers.psu.edu/dairyoutl
ook/.
speaker will begin at 7:30 p.m.
Bring lawn chairs.
Speaker will be Queen breeder
Dennis Keeney from Bethel. Ev
eryone is welcome it is a free
meeting. Call (717) 664-5130 or
(717) 336-5860 for more infor
mation.
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