Al6-Lancaster Fanning, Saturday, February 3,2001
GRAIN. CATTLE, HOG.
&MILKBFP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Corn
Oats
leans
Wheat
Table 1. Chicago Mercantile Exchange Prices, Weekly Averages
26-Jan-01 19-Jan-01 12-Jan-01 5-Jan-01 29-Dec-00
Cheese:
500 lb. barrels
40-lb. blocks
Nonfat dry milk:
Extra Grade
Grade A
Butter:
Grade AA 1.2958 1.2413
Source: Dairy Market News, AMS,USDA
(http://www.ams.usda.gov/dairy/mncs/weekly.htm)
Table 2. NASS Weekly US Average Survey Prices
20-Jan-01 13-Jan-01 6-Jan-01
Cheese
500 lb. Barrels 1/ 1.0889 1.1079
40-lb. blocks 1.0905 1.1077
Butter 1.2163 1.1575
Nonfat Dry Milk 1.0170 1.0156
Dry whey 0.2517 0.2483
Source: Dairy Product Prices, NASS, USDA
(http://usda. mannlib. Cornell, edu/reports/nassr/price/dairy/1999/)
1/ Adjusted to 39% moisture.
Closing Bids: Thursday, February 1,2001
1.0920 1.0800 1.0650
1.1110 1.0869 1.0705
1.0850 1.1188
1.0900 1.1450
1.0300 1.0300
1.0300 1.0300
1.1338 1.1300
1.2367
30-Dec-00 23-Dec-00
1.1223 1.1011
1.1101 1.0960
1.1183 1.1692
1.0146 1.0148
0.2350 0.2236
1,1218
1.1283
1.1073
1.0192
0.2410
Lean Hogs
Daily Prices As of
Date
Feb 01
Apr 01
Jun 01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
JulOl
Aug 01
Oct 01
Dec 01
Feb 02
Apr 02
Composite Volume Openjnt
01/31/01 8007 42292
Live Cattle
Daily Prices As ofThursday, 1 February
Date
Feb 01 7775 7905 7775 7905 +l5O
Apr 01 7700 7832 7700 7827 +145
JunOl 7170 7300 7170 7267 +llO
Aug 01 7150 7265 7150 7212 +BO
Oct 01 7325 7430 7325 7390 +B5
Dec 01 7425 7515 7425 7487 +75
Feb 02 7507 7595 7507 7575 +73
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
Composite VolumeOpenjnt
01/31/01 31182 138354
Pork Bellies
Daily Prices As ofThursday, 1 February
Date
Feb 01
Mar 01
May 01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
02/01/01
JulOl
Aug 01
Feb 02
Mar 02
Composite Volume Open_lnt
01/31/01 993 2686
Weekly Dairy Market Outlook
Tight Milk Means
Higher Prices
• Class 111 and IV futures
remain firm.
• Consider locking in milk
prices.
• Advanced pricing factors
announced.
The dairy futures market at
the Chicago Mercantile Ex
change provides a forecast of
what milk prices will be the rest
of the year. The futures prices as
of Jan. 26, 2001 were holding
- Thursday, 1 February
p rev .
Open High Low Last Chge Vo , um g
2214
3691
1320
104
289
279
104
5540 5660 5525 5655 +175
5790 5905 5780 5890 +175
6380 6505 6380 6497 +127
6150 6250 6150 6247 +lO7
5960 6040 5940 6020 +9B
5300 5370 5300 5365 +75
5042 5100 5042 5097 +55
5150 5187 5150 5187 +37
0 5105 5105 5105 +5
p rev p rev
Open High Low Last Chge Vo|ume open
6592 28843
14003 61928
5821 20448
2899 16913
1004 6922
569 2663
293 637
Open High Low Last Chge Qpenjnt
. 575 967
323 1026
95 486
0 161
0 44
0 1
0 1
6715 6817 67Q0 $795 +lO5.
6810 6900 6800 6887 +lO2
6935 7035 6935 6950 +45
7005 7090 7005 7090 +9o*
0 7095 7095 7095 +45
0 6045 6045 6045 +2O
0 6045 6045 6045 +2O
Ken Bailey
Penn State
January 26,2001
Prev.
Openjnt
8501
17979
7790
1549
2270
2661
1457
83
steady this week with Class 111
futures peaking at $11.99 per
cwt in October and Class IV
peaking at $13.10 by September.
Now let’s make a comparison.
The Class 111 price in 2000
peaked at $10.76 per cwt in Sep
tember, while the Class IV price
peaked at $13.27 in December.
This recent development in
the futures market begs two
questions. First, are these good
prices for 2001? Second, why are
they so high when we have “sur
plus milk.”
Let’s answer the latter ques
tion first. I think the futures
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