GRAIN, CATTLE, HOG, & MILK BFP FUTURES MARKETS Markets Courtesy of Chicago Board and Mercantile Exchange Closing Bids: Wednesday, April 17, 2002 Com Soybeans 469 1/2 474 472 7 1/ Soybean Meal 152.8 151.8 152.5 m 152.0 Weekly Dairy Market Outlook Ken Bailey Penn State April 12,2002 Butter Markets Hit Spring Flush • Grade AA butter falls to $1.15/pound. • Cheese prices holding steady • Global price of butter de pressed. Butter markets are predictably depressed this week. Butter prices were holding in the SI.2S per pound range just before and after Easter/Passover because of strong commercial demand. However, prices are weaker this week because of strong butterfat production and limited demand for the available cream. Grade AA butter prices in Chicago fell from $1.22 per pound last week to $1.15 per pound by the end of this wedfcL * . 159.3 158.2 156.0 [ 156.6 157.6 154.4 b 153.9 55.3 151.8[~152.0 153.0 151.4 151.0 152.5 151.2 b 151.1 152.5 150.3 b 150.5 152.5 The reason for the price drop is because butterfat production is very strong and demand for cream from ice cream processors is just beginning to pick up. The market is dealing with excess butterfat, which is being churned into butter. The combination of strong production and high car ryover stocks is putting down ward pressure on the butter mar ket. USDA reported this week that butter inventory figures this time of year are twice the level of last year. Butter prices normally decline in the spring months since cream and butter supplies are normally much higher than market needs. In 2000, Grade AA butter prices were $0.97-$l.lO per pound in Chicago during March and April. Last year, however, milk and but .tetfat. production .was 'depressed " 476 159.3 159.2 156.e| -13 154.5 154.5 a 152.0 151.4 151.3 151.3 a 150.6 a 150.5 Lean Hogs Date 04/16/02 *CASH* 0 421742174217 -510 04/17/02 May 02 4895 50354895 5035 +2OO 04/17/02 Jun 02 5570 561555005597 +135 04/17/02 Jul 02 5570 563555355595 +63 04/17/02 Aug 02 5425 549054005435 +2B 04/17/02 Oct 02 4700472046704690 -5 04/17/02 Dec 02 4595 461545354537 -35 04/17/02 Feb 03 4875 489048254865 -27 Composite Volume Openjnt 04/16/02 9225 34258 Live Cattle Date 04/16/02 *CASH* 0 679867986798 unch 04/17/02 Apr 02 6575 664765606607 +6O 04/17/02 Jun 02 6265 633262656300 +43 04/17/02 Aug 02 6317 637563156347 +3O 04/17/02 Oct 02 6650 668566456662 +27 04/17/02 Dec 02 6840 687568406857 +l5 04/17/02 Feb 03 6950 697569406952 +2 04/17/02 Apr 03 7070 708070607077 +l2 Composite Volume Open_lnt 04/16/02 17638 96677 Pork Bellies Date 04/16/02 *CASH* 04/17/02 04/17/02 04/17/02 04/17/02 04/17/02 -5 -9 -10 Composite Volume Open_lnt 04/16/02 445 3315 -10 -13 Oats -20 -23 -19 -10 -15 -10 during the spring months. Grade AA butter prices rose to $1.50-$1.96 per pound during March and April of 2001. Cheese prices at the Chicago Mercantile Exchange held steady this week. Blocks rose from $1.24 per pound on Monday, April 8 to $1.25 by Friday, April 12. Barrel cheese prices rose half a penny per pound from $1.21 on Monday to $1.2150 by Friday. Cheese pro duction levels are strong for this time of year, but demand is suffi cient enough to clear the markets each week. Global butter prices have been depressed in recent months. But ter prices (82 percent butterfat) for New Zealand and Australia for the first half of April ranged from $950-$1,050 per ton. That is an average of $0.45 per pound, well below the U.S. wholesale butter price of $1.15 per pound. The milk production season in hotter. That will likely create an " - “iftcenttorto'tmpoftmomßuttet ■' r* u- li . Previous Previous Open High Low Last Chge Volume open 0 0 1409 3503 5501 19392 901 3028 605 2501 491 1995 304 2025 10 385 „ TT . . « ¥ Previous Previous Open High Low Last Chge Vo|ume open 0 0 2913 6972 7694 40603 3186 18952 1927 19807 1670 7483 208 2185 39 675 n . f T .o. Previous Previous Open High Low Last Chge volume Open Jnt 0 0 231 1870 19? 1074 15 366 0 4 0 1 0600060006000 unch May 02 6690 687066806800 +lOB Jul 02 6820 697068026880 +BO Aug 02 6700 6890670b6772 +B2 Feb 03 6670667066706670 +l5 Mar 03 6627 662766276627 unch New Zealand and Australia is winding down. USDA reports that they are +5 percent ahead of the prior season. So what does it cost to export butter from New Zealand to the U.S.? If it is for butter outside our TRQ quota, the applicable tariff is 30.9 cents per kilogram, or $0.68 per pound. The trans portation cost of butter from that part of the world to the U.S. is $2OO per ton, or 9 cents per pound. With a global price of $0.45 per pound, you can price New Zealand butter right now into the U.S. market for just $1.22 per pound, which at this moment is above the U.S. price. The relative difference between the U.S. and import price will change quickly in the next few months as demand for ice cream heats up. Ice cream is a big user of cream, which will be in short supply when the weather gets 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 re cord sheets or to develop livestock feed cost data, here’s last week’s average costs of various ingredients as compiled from regional reports across the state of Penn sylvania. 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. Com, No.2y 2.30 bu., 4.11 cwt. Wheat, N 0.2 2.61 bu., 4.36 cwt. Barley, N 0.3 —1.85 bu., 3.96 cwt. Oats, N 0.2 —l.BB bu., 5.85 cwt. Soybeans, No.l 4.28 bu., 7.14 cwt. Ear Com 65.66 ton, 3.28 cwt Alfalfa Hay 150.50 ton, 7.53 cwt Mixed Hay —148.75 ton, 7.44 cwt. Timothy Hay 125.00 ton, 6.25 cwt
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