Alfl leys star Farming, Saptewbf29,2ool GRAIN, CATTLE, HOG. & MILK BFP FUTURES MARKETS Markets Courtesy of Chicago Board and Mercantile Exchange Closing Bids: Wednesday, September 26,2001 Final Futures Settlement Report September 27, 2001 03:10 PM CDT Soybean Meal Weekly Dairy Market Outlook Ken Bailey Penn State Sept. 21,2001 Dairy Markets Steady Despite Tragedy • CME cheese holding, butter weaker. • August milk production down 0.8 percent. • Economy likely in a reces sion. The dairy markets are hold ing steady despite the awful tragedy that occurred last week. The economy literally came to a standstill as the FAA grounded all flights and consumers stayed ' home glued to the television sets. As of this week the markets for dairy commodities appear un changed despite a bad economic outlook for much of the rest of the U.S. economy. Cheese prices at the Chicago Mercantile Exchange actually strengthened a bit this week. Block prices rose from $1.72 per pound on Monday, Sept. 17 to $1.7250 on Friday, Sept. 21. Barrel cheese prices rose from $1.68 per pound on Monday to $1.6825 by Friday. USDA re ported this week that cheese demand is moderate, but output is still limited because of the short milk supply. Butter prices actually weak ened a bit this week at the Chi cago Mercantile Exchange. Grade AA butter prices fell from $2.1675 per pound on Monday to $2.07 by Friday. Butter prices are seasonally weakening be cause of reduced demand for cream from ice cream proces sors, increased supplies of cream from fluid processors, and a re bound in butterfat production because ot cooler weather. The price of Western nonfat dry milk is still above the CCC purchase price for nonfortified nonfat dry milk of $0.90 per pound. During the week of Sept. 17-21, the price of low/medium heat Western nonfat dry milk was $0.93-$0.95 per pound. Demand for domestic and export needs must be adequate since USDA reported there were no CCC purchases of nonfat dry Oats milk under the dairy price sup port program during the week of Sept. 17-21. Part of the reason dairy com modity and futures markets are showing little change in prices is because of the tight outlook for the milk supply. The USDA’s August milk production report showed milk production for 20 major states was 11.8 billion pounds, down 0.8 percent com pared to a year ago. Despite a slight increase in average milk production per cow (up 4 pounds from a year ago), cow numbers fell by 7,000 head from the month before to 7.74 million head. This was surprising since cow numbers had leveled out the past three months and milk prices have been very high. The rest of the U.S. economy is not nearly as robust as the dairy industry. The Wall Street Journal reported today that the Dow Jones Industrial Average, a broad measure of the stock market, plunged 13 percent since the day before the trade center attacks. That means $1.2 trillion in stock market wealth has been wiped out. Clearly this has some implications for the future of the U.S. economy. That same article, titled “A New Lean Hogs 09/25/01' Oct*ol 5785 5825 5760 5787 -20 6364 15682 09/26/(fl , Dec 01- 5355 5450534(15377 *lO 5637 19807 09/26/01 ffeb 02 5395 548? 5380 5425 unch 431 4760 09/26/01 Apr 02 5500 560055005545 unch 259 1989 09/26/01 May 02 6020 6060 6020 6040 +5 38 471 09/26/01 Jun 02 6275 630762656295 +8 92 483 09/26/01 Jul 02 6000 603060006010 +5 48 207 09/26/01 Aug 02 5900 590758755885 +23 11 103 09/26/01 Oct 02 5390 540053905397 +25 0 77 Composite Volume Open_lnt 09/25/01 12880 43579 Live Cattle Date 09/26/01 Oct 01 6697 673566306697 09/26/01 Dec 01 6845 689767856860 09/26/01 Febo2 7105 716270607130 09/26/01 Apr 02 7325 736072707332 09/26/01 Jun 02 7005 705069707020 09/26/01 Aug 02 7090 7115 7062 7102 09/26/01 Oct 02 7300 731072657305 Composite Volume Opeh_lnt 09/25/01 24171 112534 Pork Bellies _ Previous Previous Open High Low Last Chge Vollune Openjnl 09/26/01 Feb 02 7630 768075007530 -257 1205 , 2529 09/26/01 Mar 02 7650 765074957520 -252 32 56 09/26/01 May 02 7820 784077407840 -210 3 29 09/26/01 Jul 02 7845 784576907690 -285 4. 17 09/26/01 Aug 02 7690 769076257690 -285 1 4 Date isite Volume Open_lnt Gomi 1245 09/25/01 Recession Looms In the U. 5.,” cites a recent survey of economic forecasters. They expect the U.S. economy will slow down suffi ciently this year to put us into a recession. The U.S. government will at tempt to combat both a war and the recession by increasing spending and considering addi tional tax cuts. The economy is not expected to rebound until sometime next year. It is hard to argue that a re cession will have any positive impact on the U.S. dairy indus try. High unemployment, less business activity, and a reduc tion in consumer confidence all points to less spending in the general economy. However, the dairy industry is a lot more resi lient than other sectors of the economy. Away-from-home sales of cheese and other dairy products may be substituted for more at-home sales. Thus the direct impact of an inevitable slowdown in the general econ omy is not clear for the dairy in dustry at this time. „ Previous Previous Open H.gh Low LaslChge Vo|unl( . open Int +l5 6904 20864 +8 9627 40882 +33 4406 26282 +7 1290 10379 +8 1659 12506 +l2 276 1396 +5 9 225 2635 *• i) V’ 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 2.31 bu., 4.14 cwt. Wheat, N 0.2 2.48 bu., 4.13 cwt. Barley, N 0.3 —1.4 bu., 3.0 cwt. Oats, N 0.2 1.40 bu„ 4.35 cwt. Soybeans, No.l —4.41 bu.,7.37 cwt. Ear Corn 57.82 ton, 2.89 cwt. Alfalfa Hay 116.25 ton, 5.81 cwt. Mixed Hay 113.75 ton, 5.69 cwt. Timothy Hay 115.00 ton, 5.75 cwt. / Jty J // if: v.
Significant historical Pennsylvania newspapers