AlfrLancMter Farming, Saturday, Dcctmber 16, 2000
GRAIN, CATTLE, HOG,
& MILK BFP
FUTURES MARKETS
Market* Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Thursday, December 14,2000
Corn
Oats
Soybean Meal
01M
OlAUfl
\oim
179.0
177.0
toifljpl
otm^
Montfr
176.01176.
By Ken Bailey
Penn State University
December 8,2000
Butter Prices
Weaken Temporarily
• Butter dropped $0 30/lb
on Friday
prices
Cheese
slightly
Cheese continues into the
CCC
Butter prices at the Chicago
Mercantile Exchange took a hit
this Friday dropping from
$1.8525 per pound on Monday,
December 4 to $1 500 by Friday,
December 8. This should not
represent a market consensus on
price movement, however, since it
likely reflected short-run market
conditions.
USDA described the butter
market this week in their weekly
Dairy Market News as, “unsettled
178.0 b
71178.0
179.
174.0 b
0|174.1
177.
0 175.0|175.0 b
Jpg
High
with a weak undertone.”
However, USDA also noted that
cream demand is very high this
time of year and very little fresh
butter is being made. And,
“producers and handlers continue
to report excellent butter
demand.” Data suggests that
American consumers have been
loading up on high fat products
this year. That means very strong
demand for cream, which of
course is used to make butter As
a result, butter makers have been
pulling frozen product out of
inventory to meet short term
needs USDA reports that many
butter producers are reporting that
year-end inventories will be very
low, the lowest in many years.
So, the jury is not yet out
regarding what butter prices will
do between now and the end of
the year. Look for more
volatility.
weaken
178.2 a 178.1
174.1 a| 174.1'
1175.5 a 1175.3
Weekly Dairy Market Outlook
we2 le pdce r s iC fo? 4 W o e £Zl ' blocks Table 1 ‘ Chicago Mercantile Exchange Prices, Weekly Averages
at the Chicago Mercantile 8-Dec-00 I-Dec-00 24-Nov-00 17-Nov-00 10-Nov-OO
Exchange fell from $1.1150 per
pound on Monday to $1.09 by
Thursday, but rose to $l.lO on
Friday. Barrel cheese remained
steady at $1.09 per pound all
week, but rose to $1.0950 on
Friday.
Both nonfat dry milk and
cheese moved into the
Commodity Credit Corporation
this week under the dairy price
support program. CCC net
purchases totaled 9,109,810
pounds of nonfortified and
1,791,719 pounds of fortified
nonfat dry milk from the West,
1,032,173 pounds of block cheese
from the West and Midwest, and
887,988 pounds of barrel cheese
from the West.
Wheat
+ 1
Unch
Lean Hogs
Daily Prices As ofThursday, 14 December
Date
Dec 00 5885 5885 5865 5882 unch
Feb 01 5875 5875 5805 5845 -35
Apr 01 5835 5835 5765 5797 -45
Jun 01 6380 6380 6320 6360 -27
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
JulOl
Aug 01
Oct 01
Dec 01
Feb 02
Composite Volume Openjnt
12/13/00 10041 47875
Live Cattle
Daily Prices As of
Date
Dec 00
Feb 01
Apr 01
Jun 01
Aug 01
Oct 01
Dec 01
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
Composite Volume Open_lnt
12/13/00 15474 133282
Pork Bellies
Daily Prices As ofThursday, 14 December
Date
Feb 01
Mar 01
May 01
12/14/00
12/14/00
12/14/00
12/14/00
12/14/00
JulOl
Aug 01
Composite Volume Open_lnt
12/13/00 659 2602
Cheese:
500 lb. barrels
40-lb. blocks
Nonfat dry milk:
Extra Grade
Grade A
Butter;
Grade AA
Table 2. NASS Weekly US Average Survey Prices
Cheese:
500 lb. Barrels 1/ 1.0378
40-lb. blocks 1.0516
Butter 1-7542
1.0147
0 1977
Nonfat dry milk
Dry whey
Open High Low Last Chge
3486
4724
1358
227
179
31
28
6140 6140 6090 6127
5940 5940 5895 5917
5110 5110 5090 5100
4840 4855 4825 4855
0 5040 5015 5040
- Thursday, 14 December
Open High Low Last Chge
7695 7740 7652 7670
7745 7765 7670 7680
7845 7847 7775 7787
7435 7440 7387 7402
7425 7432 7395 7407
7550 7562 7537 7547
7630 7635 7615 7630
Open High Low Last Chge ope^;
567 2197
52 190
35 131
1 54
3 30
6695 6817 6605 6672 +2
6690 6820 6620 6675 +lO
6750 6880 6740 6750 -30
6850 7010 6800 6800 -75
6900 6930 6887 6930 +143
1.0910
1.1025
1.0710
1.0985
1.0300 . 1.0300 1.0300 1.0300 1.0300
1.0300 1.0300 1.0300 1.0300 1.0?00
1.7175
1.8325
2-Dec-00 25-Nov-OO 18-Nov-OO 11-Nov-00 4-Nov-OO
1.0020
1.0432
1.7217
1 0161
0.1990
Prev.
Openjnt
5044
28113
6392
4307
1263
610
1113
1003
30
-23
-38
-37
-5
+2O
Prev. Prev.
Volume Openjnt
2530 11569
7176 66773
3009 30584
1084 10826
884 10007
658 2678
133 845
1.0517
1.0833
1.0340
1.1020
1.7950
1.7950
0.9851
1.0081
1.5498
1.0159
0.1939
0.9875
1.0222
1.2958
1.0178
0.1898
1.0040
1.0080
1.5805
0.9874
1.044
1.1431
1.0136
0.188