Al6-Lancaster Farming, Saturday, August 11,2001
GRAIN, CATTLE, HOG,
& MILK BFP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Thursday, August 9,2001
Soybean Meal
Weekly Dairy Market Outlook
Ken Bailey
Penn State
Aug. 3,2001
Cheese Production Grows
• American cheese produc
tion down just 0.2 percent.
• Production of high fat dairy
products down.
• July Federal order class
prices announced.
USDA released the Dairy
Products report for June 2001.
The results show cheese and
butter production gained rela
tive to year ago levels. Produc
tion of other high fat dairy
products, however, slipped.
Recall that June milk produc
tion was down 0.5 percent rela
tive to a year ago. Butter
production in June was 88.125
million pounds, down just 1.1
percent relative to a year ago.
American cheese production in
June was 307.844 million
pounds, down just 0.2 percent
from a year ago. That decline is
right in line with the growth rate
for milk production.
American cheese production
could put downward pressure
on the Class 111 futures prices,
particularly in the outer months
of September-December. The
production of other cheeses was
mixed. Mozzarella production
was up 0.9 percent in June, but
was offset by a drop of 11.5 per
cent of other Italian cheeses.
Cream cheese and Neufchatel
production, which uses a lot of
expensive cream, was down 13.4
percent. Cream cheese prices at
retail likely haven’t risen fast
enough to pay the high cost of
butterfat.
Dry whole milk, another user
of butterfat, fell 77.2 percent in
June relative to a year ago. And
ice cream production (regular)
fell 4.4 percent in June relative
to a year ago.
The ice cream industry is con
cerned that they can’t pass on
the high cost of butterfat to
retail customers. Thus the laws
of supply and demand are at
Oats
work: butterfat is being rationed
to alternative dairy uses.
USDA announced the federal
order class prices for July 2001.
The Class II price was $15.96
per CWT (down $0.09 from the
prior month). Class 111 was
$15.46 per CWT (up $0.44 from
the prior month), and Class IV
was $14.81 per CWT (down
$0.52 from the prior month).
The Class 111 price rose because
Forecast of Blend Prices for Northeast Federal Order I
Boston Boston Order 1 Lancaster
Butterfat Protein Other Solids Class IV Class 111 Class II Class I PPD Blend Blend
Month
Jan-01
Feb-01
Mar-01
Apr-01
May-01
Jun-01
Jul-01
Aug-01
Sep-01
Oct-01
No*ol
Dec-01
Annual avg
Lean Hogs
Daily Prices As ofThursday, 9 August
Date
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
Aug 01 7140 7155 7105 7117 -43
Oct 01 5935 6010 5905 5912 -50
Dec 01 5520 5547 5465 5507 -15
Feb 02 5600 5630 5570 5580 -17
Apr 02 5605 5645 5585 5585 -30
May 02 6125 6150 6125 6132 +27
Jun 02 6425 6445 6400 6430 -15
Jul 02 6260 6280 6250 6280 -10
Aug 02 0 5990 5982 5982 unch
Composite Volume Openjnt
08/08/01 5990 51549
Live Cattle
Daily Prices As ofThursday, 9 August
Date
Open High Low Last Chge f rev '
. Volume
Aug 01 7145 7160 7085 7087 -65 5087
Oct 01 7390 7412 7350 7357 -53 6794
Dec 01 7470 7480 7432 7442 -35 2699
Feb 02 7640 7650 7597 7600 -35 1092
Apr 02 7780 7787 7760 7765 -27 146
Jun 02 7360 7365 7330 7335 -20 90
Aug 02 7380 7380 7375 7375 unch 0
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
Composite Volume Openjnt
08/08/01 15909 107128
Pork Bellies
Daily Prices As ofThursday, 9 August
Date
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
08/09/01
Aug 01 9585 9820 9480 9750 +153
Feb 02 7775 7880 7775 7830 +7B
Mar 02 7810 7870 7777 7777 +122
May 02 jBOOO 8150 8000 8150 -50
Jul 02 0 8200 8100 8200 unch
Aug 02 7850 7950 7850 7950
Composite Volume Open_lnt
08/08/01 1004 2855
of a higher NASS cheese price,
and the Class IV price fell be
cause of a lower NASS market
price for nonfat dry milk
Product price averages used
in computing these prices were:
butter $1.9094, nonfat dry milk
$0.9634, cheese $1.6573, and dry
whey $0.2862.
For those interested in class
and blend price forecasts for the
Northeast Federal Order 1, see
$/lb
Open High Low Last Chge , 7 ** rev '
Volume
2516
2708
537
185
31
Open High Low Last Chge !* rev ’
Volume
622
377
l/cwt
Vcwt
Vcwt
my weekly updates at my web
site: http://
dairyoutlook.aers.psu.edu/
N ortheast/QuarterlyOutlook/
NortheastFore.htm.
$/cwt
$/cwt
S/cwt
Prev.
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$/cwt