Al6-Lancaster Farming, Saturday, August 4,2001 GRAIN, CATTLE, HOG, &MILKBFP FUTURES MARKETS Markets Courtesy of Chicago Board and Mercantile Exchange Closing Bids: Thursday, Aug. 2,2001 'bean Meal So Weekly Dairy Market Outlook Ken Bailey Penn State July 27,2001 Commercial Demand Mixed • Butter use down. • Cheese consumption weaker. • The U.S. economy slows in the second quarter to 0.7 per cent. The USDA released con sumption numbers today that suggest that demand for dairy products is slowing. During the months of January-April 2001, consumption of butter fell 5.7 percent and consumption of American and other cheese grew just 1.6 percent and 2.1 percent, respectively, on an annual basis. Nonfat dry milk consumption grew an astonishing 39.2 percent during the months of January April 2001. This was likely due to the fact that domestic prices for nonfat dry milk were closer to strong global powder prices. Fluid milk products grew just 0.1 percent from a year ago. Butter consumption likely fell in response to higher retail prices. For example, The Bureau of Labor Statistics reported that retail butter prices in major cities in April was $3.01 per pound, up 30.8 percent from a year ago. Butter consumption is very sensitive to changes in retail prices. There are also re ports that ice cream prices are higher because of the high cost ofbutterfat. It is less clear what drove cheese consumption from levels of 2-7 percent growth last year to now lower growth rates. It was probably due to a combina tion of higher wholesale and retail cheese prices and a slow ing U.S. economy. The Bureau of Labor Statistics reported the retail prices for natural cheese in major cities was $3.97 per pound in June 2001, up 5.6 percent from a year ago. Wholesale cheese prices in June, however, rose 38.8 percent. The U.S. Department of Commerce reported yesterday that the U.S. economy grew at an annual rate of just 0.7 per cent in the second quarter of this year. This growth rate, called the Gross Domestic Product (GDP), grew 1.3 percent in the first quarter. It represents a major slowdown in the U.S. economy relative to a year ago. The question is, what impact will this have on consumption of dairy products? The dairy futures markets for Class 111 and IV at the Chicago Mercantile Exchange still looks very strong for the rest of the year. For example, the Class 111 price in December is up to $13.25 per CWT. About three j weeks ago, the December Class, 111 futures was just over $l2. Clearly the market is con cerned that milk production will still be tight by year end. One caution, however cow num bers and production per cow are rebounding. The next milk pro duction report may provide greater guidance. Lean Hogs Daily Prices As ofThursday, 2 August Date 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 Aug 01 7085 7120 7035 7065 Oct 01 6055 6057 5905 5937 Dec 01 5600 5605 5475 5500 Feb 02 5695 5707 5590 5610 Apr 02 5740 5750 5660 5660 May 02 6275 6287 6225 6225 Jun 02 6505 6512 6445 6500 Jul 02 6300 6305 6260 6297 Aug 02 6000 6000 5985 5985 Composite Volume Openjnt 08/01/01 11510 52378 Live Cattle Daily Prices As of Date 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 Aug 01 7175 7187 7152 7165 +3 Oct 01 7370 7400 7352 7357 -15 Dec 01 7455 7485 7447 7455 -10 Feb 02 7642 7662 7625 7627 -5 Apr 02 7775 7805 7775 7792 +lO Jun 02 7345 7375 7345 7347 unch Aug 02 0 7380 7380 7380 +3 Composite Volume Openjnt 08/01/01 16181 111812 Pork Bellies Daily Prices As ofThursday, 2 August Date 08/02/01 08/02/01 08/02/01 08/02/01 08/02/01 Aug 01 9740 9770 9560 9710 -22 Feb 02 7955 8000 7840 7940 -17 Mar 02 7850 7900 7800 7835 +55 May 02 0 8095 8095 8095 unch Jul 02 0 8200 8200 8200 unch Composite Volume Open_lnt 08/01/01 562 2893 Livestock Market, Inc. Jersey Shore, Pa. Report Supplied Bv Auction Thursday, August 2,2001 RETURN TO FARM CALF: 100.00- 540.00. GOOD VEAL: 70.00-99.00. COMMON VEAL: 20.00-69.00. CHOICE STEERS: 71.00-74.00. SELECT STEERS: 68.00-70.00. COMMON STEERS: 50.00-69.00. COMMERCIAL COWS: 40.00-45.00. CANNERS/CUTTERS: 37.00-44.00. SHELLS; 30.00-38.00. CHOICE HEIFERS: 70.00-73.50. SELECT HEIFERS: 65.00-69.00. COMMON HEIFERS; 62.00-64.00. COMMON FEEDERS: 70.00-78.00. BULLS: 53.00-58.50. Open High Low Last Chge y o |^J^ 4948 4784 1467 177 71 52 Thursday, 2 August Open High Low Last Chge Open High Low Last Chge Jersey Shore Prev. Prev. Open_lnt 20479 44279 22767 13717 6080 4480 id Volume 6456 5543 2686 1040 323 132 Prev Open_ln 2031 80S 4 (f 13 Prev. Volume 440 122 Average Farm Feed Costs for Handy Reference To help farmers across the state to have handy reference of commodity input costs in their feeding operations for DHIA record sheets or to develop livestock feed cost data, here’s last week’s average costs of various ingred ients as compiled from regional reports across the state of Pennsylvania. Remember, these are averages, so you will need to adjust your figures up or down according to your location and the quality of your crop. Corn, No.2y 2.27 bu., 4.06 cwt. Wheat, N 0.2 2.44 bu., 4.07 cwt. Barley, N 0.3 —1.37 bu., 2.93 cwt. Oats, N 0.2 —1.49 bu., 4.34 cwt. Soybeans, N 0.1—4.79 bu., 7.99 cwt. , Ear Corn 59.24 ton, 2.% cwt. * Alfalfa Hay —115.25 ton, 5.76 cwt. , Mixed Hay—lll.2s ton, 5.56 cwt. Timothy Hay 96.25 ton, 4.81 cwt. Greencastle Hay * Greencastle, Pa. ■„ Report Supplied By Auction | August 2,2001 TOTAL LOADS: 7. ALFALFA: 55.00. i MIX HAY: 57.00-75.00. $1.95/BALE| Prev. Open.lnt 11182 25903 10310 3514 906 264 204 73 22
Significant historical Pennsylvania newspapers