Al6-Lancaster Farming, Saturday, September 8,2001
GRAIN. CATTLE. HOG,
&MILKBFP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Thursday, September 6,2001
Soybeans
fomg; j 469 469 1 7
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6isaJ|4Bo 1/2 [4Bl 1
474
02Mar
487
OZMayi 487
02Jul 488
m*
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484
Oppnlrig
Soybean Meal
|o2Aug
157.0
02Sep
156.0
020 ct 155.0
02Dec 154.5 155.0 152.8 152.5 b 152.8 a
[Month -Ofiening H^oi"pLow|
Ken Bailey
Penn State
Aug. 31,2001
Butter Prices
Head Higher
• CME Grade AA butter
reaches $2.23/pound.
• Block cheese prices
weaken.
• USD A announces August
class prices.
Grade AA butter prices at the
Chicago Mercantile Exchange
jumped from $2.1750 per pound
on Monday, Aug. 27 to $2.2250
by Wednesday, Aug. 29. Butter
prices remained unchanged on
Friday, Aug. 31.
Cash butter prices are $1
above year ago levels. Some in
dustry insiders are expecting
Grade AA butter prices will
reach $2.50 per pound sometime
this fall. Others, however, are
expecting prices to ease once
milk production rebounds later
this fall.
While it is very hard to pre-
475 1
156.0 b
156.2
157.5
154.3
156.0 {154.3
155.0[152.5
153.0
Weekly Dairy Market Outlook
diet, U.S. butter prices will likely
ease sometime this fall. Retail
butter prices are now over $3 per
pound. The Bureau of Labor
Statistics reported that U.S. city
average retail prices for July
were $3,549 per pound, 31 per
cent higher than a year ago.
USDA also reported this week
that butter consumption for
January through June of this
year was down 3.7 percent rela
tive to the same period a year
ago. This was likely due to the
higher retail prices.
Another factor to consider is
that butter imports have been
growing this year, particularly
from New Zealand. Milk pro
duction will seasonally peak in
New Zealand in October-
November. Thus even more
butter imports will be available
to U.S. markets. Butter imports
into the U.S. market are attrac
tive whenever domestic butter
prices on the West Coast exceed
$1.64 per pound. That is based
on a high-tier tariff rate of $0.70
per pound, world butter prices
of $0.65 per pound, and import
156.2
156.2 a
154.3
152.8
152.5
152.8
Oats
-14
-14
-13
-12
costs of about $0.09 per pound.
Butter imports reportedly are
selling $0.20 per pound below
Grade AA domestically pro
duced butter.
Cheese prices at the Chicago
Mercantile Exchange were
mixed this week. Barrel prices
held at $1.68 per pound all
week. Block cheese prices, how
ever, declined from $1.78 per
pound on Monday to $1.72 per
pound Wednesday through
Friday. Prices have generally
been high for cheese because of
reduced milk supplies and lower
solids levels this summer.
Cheese consumption has been
relatively steady the Erst half of
the year.
There are two factors that
could cause lower cheese and
butter prices the last quarter of
the year. First is a return to
normal milk production levels.
Cow numbers appear to be sta
bilizing. An increase in produc
tivity this fall because of cooler
weather and improved forage
could bring on more milk. The
other factor is the economy. The
Lean Hogs
Daily Prices As ofThursday, 6 September
Date
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
Oct 01 5985 6050 5965 6035 +3O
Dec 01 5637 5650 5585 5637 unch
Feb 02 5667 5685 5645 5667 -18
Apr 02 5780 5800 5770 5782 -3
May 02 6250 6300 6250 6275 -5
Jun 02 6537 6560 6510 6547 -5
Jul 02 6315 6315 6280 6315 +2O
Aug 02 6040 6080 6020 6080 +5
Oct 02 5405 5465 5405 5452 -3
Composite Volume Open_lnt
09/05/01 9278 41005
Live Cattle
Daily Prices As of
Date
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
Oct 01 7300 7300 7230 7237
Dec 01 7440 7450 7400 7405
Feb 02 7610 7615 7567 7570
Apr 02 7770 7770 7735 7760
Jun 02 7390 7410 7380 7400
Aug 02 7455 7460 7430 7447
Oct 02 7577 7577 7540 7550
Composite VolumeOpenjnt
09/05/01 10601 110085
Pork Bellies
Daily Prices As ofThursday, 6 September
Date
09/06/01
09/06/01
09/06/01
09/06/01
09/06/01
Feb 02
Mar 02
May 02
Jul 02
Aug 02
Composite Volume Openjnt
09/05/01 663 2776
real gross domestic product, or
GDP, increased at an annual
rate of 0.2 percent during the
second quarter of 2001. That
means the economy is barely
growing. Economists are still
trying to figure out whether we
are in the middle of an economic
recession. A slow growing U.S.
economy will likely translate
into slower sales of dairy prod
ucts.
USDA reported August 2001
class and component prices. The
August federal order class prices
with changes from the month
before are Class II $15.98 per
CWT (+50.02), Class 111 $15.55
(+50.09), and Class IV $15.06
(+50.25). The product price av
erages used in computing the
class prices were butter $1.9990,
nonfat dry milk $0.9473, cheese
$1.6693, and dry whey $0.2886.
See Lancaster Farming
Cow Cam
Visit our Website at www.lancasterfarming.com
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Thursday, 6 September
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8430 8430 8305 8385 -85
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$712 8712 8712 8T712 -18
8485 8485 8485 8485 unch
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' 2
Average Farm Feed
Costs for Handy
Reference
To help farmers across the state to
have bandy 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 2.28 bu., 4.08 cwt.
Wheat, N 0.2 2.45 bu., 4.09 cwt.
Barley, N 0.3 —1.37 bu., 2.94 cwt.
Oat*, N 0.2 —1.40 bu., 4.36 cwt.
Soybeans, No.l —4.40 bu., 7.34 cwt.
Ear Com 61.87 ton, 3.09 cwt.
Alfalfa Hay —112.50 ton, 5.63 cwt.
Mixed Hay —108.75 ton, 5.44 cwt.
Timothy Hay—ll7.so ton, 5.88 cwt.
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