Al6-Lancaster Farming, Saturday, July 6, 2002
GRAIN, CATTLE, HOG,
& MILK BFP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Wednesday, July 3, 2002
Com
07/02/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
*CASH*
JUL 02
SEP 02
DEC 02
MAR 03
MAY 03
JUL 03
SEP 03
DEC 03
MAR 04
JUL 04
DEC 04
Total
07/02/02
Soybeans
07/02/02
07/03/02
07/03/02
07/03/02
07/03/02
*CASH*
JUL 02
AUG 02
SEP 02
NOV 02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
JAN
MAR
MAY
JUL
SEP
NOV
Total
07/02/02
Soybean Meal
*CASH*
JUL 02
AUG 02
SEP 02
OCT 02
DEC 02
JAN 03
MAR 03
MAY 03
JUL 03
AUG 03
SEP 03
OCT 03
DEC 03
07/02/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
Total
07/02/02
Weekly Dairy Market Outlook
Ken Bailey
Penn State
June 28,2002
Retail Dairy Prices Rising
• Ice cream more expensive
than in 2001.
• Cheese remains below sup
port levels.
• Demand is sluggish.
Cheese prices remain below
support levels this week, whereas
butter prices are up 4 cents per
pound.
USDA reported that cheese of
ferings continue to exceed de
mand. That means we are still
manufacturing more cheese than
we are selling, so prices remain
depressed. At the Chicago Mer
cantile Exchange this week, block
cheese prices fell from $l.lO per
pound on Monday, June 24 to
$1.0850 per pound the next day,
and remained at that level the
rest of the week. Barrel cheese
prices fluctuated between $1.0725
and $1.0750 per pound.
High
2314
2254
2324
2432
2502
2534
2570
2454
2386
2450
2500
2390
Open
2250
2310
2420
2490
2520
2550
2450
2360
2424
2500
2370
Volume Qpen_lnt
128892 449531
High
5325
5590
5410
5244
5144
Open
5390
5210
5110
5000
5150
5134
5120
5110
4950
4920
5020
5020
5010
5020
4950
4860
Volume Qpen_lnt
95170 216267
Open High
18350
1840
1800
1750
1698
1685
1668
1645
1622
1623
1615
1605
1590
1585
1805
1770
1718
1675
1665
1658
1630
1611
1611
1610
1605
1590
1585
Volume Open_lnt
42931 148205
Grade AA butter prices at the
Chicago Mercantile Exchange ac
tually rose this week, from
$1.0325 per pound on Monday to
$1.0575 by week’s end. Despite
strong inventory levels, butter
prices perked up this week be
cause of hot and humid condi
tions throughout the country.
Cows produce less milk and but
terfat under these conditions.
USDA reported that butter im
ports January-May of this year
were well below year-ago levels.
Imports within U.S. quota levels
were down 31 percent relative to
a year ago, and over-quota butter
imports (called high-tier imports)
were down 67 percent. Why go
through the trouble of importing
butter and paying all those tariffs
when you can find it cheaper
here?
Consumers are not very ex
cited about dairy products so far
this year. During the period Feb
ruary through April of this year,
Last
2314
2244
2312
2416
2470
2482
2510
2430
2360
2434
2500
2390
Low
2314
2222
2290
2394
2462
2480
2500
2430
2354
2424
2500
2370
Last
5325
5564
5380
5226
5110
Low
5325
5380
5210
5100
4980
5104
5100
5090
5090
4950
4910
5020
5014
5004
5014
4950
4840
Last
18350
1834
1790
1741
1692
1674
1664
1640
1616
1617
1590
1580
1580
1575
Low
18350
1805
1760
1716
1670
1655
1645
1625
1605
1605
1590
1580
1580
1570
consumption of most dairy prod
ucts was well below the same pe
riod a year ago. The change in
consumption was as follows: 1.1
percent for butter, -0.1 percent
for American cheese, 0.7 percent
for Other cheese, -42.3 percent
for nonfat dry milk, and 0.4 per
cent for fluid milk products. The
drop in nonfat dry milk con
sumption is particularly alarming
since imports of MPC for the first
four months of this year were up
13.3 percent relative to a year
ago.
So why aren’t consumers eat
ing as many dairy products this
year as last year?
One reason may be because the
U.S. economy is not doing very
well. The stock market remains
in a slump and announcements
of massive layoffs continues.
World Com, the country’s second
largest long-distance carrier, just
announced they are planning on
laying off 17,000 workers. De
spite a rise of 6.1 percent in the
growth of the U.S. economy the
first quarter of this year (GDP),
corporate profits have not been
Lean Hogs
Date
07/03/02 *CASH*
07/03/02 Jul 02
07/03/02 Aug 02
07/03/02 Oct 02
07/03/02 Dec 02
07/03/02 Feb 03
07/03/02 Apr 03
07/03/02 May 03
07/03/02 Jun 03
07/03/02 Jul 03
Chge
-40
-32
-42
-42
-70
-86
-92
-30
-10
-4
-10
+ 10
Live Cattle
Date
07/03/02 *CASH*
07/03/02 Aug 02
07/03/02 Oct 02
07/03/02 Dec 02
07/03/02 Feb 03
07/03/02 Apr 03
07/03/02 Jun 03
07/03/02 Aug 03
Chge
-90
+ 122
+ 70
+ 34
+ 20
+ 14
+ 22
+ 24
+ 30
unch
unch
Pork Bellies
Date
07/03/02 *CASH*
07/03/02 Jul 02
07/03/02 Aug 02
07/03/02 Feb 03
07/03/02 Mar 03
07/03/02 May 03
Oats
07/02/02
07/03/02
07/03/02
07/03/02
07/03/02
07/03/02
Total
07/02/02
~ n- u i i Previous Previous
Open H.gh Low Last Chge Vo , ume open Int
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 520452045204
5270 532052205297
4945 495748604935
4140 416540654115
3850 389537973870
4200 427041654265
4515 462045154580
5215 521551455215
5500 556055005560
5510 552054705520
ri* ui , <r u Previous Previous
Open High Low LnstChge Volume o pe „Jnt
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 640064006400+103
6487 648764256447 -50
6700 670066456660 -57
6790 679067556767 -25
6885 690268706875 -22
6980 698569556982 -8
6585 658765706580 unch
6645 664566456645 -5
~ TI . , , , Previous Previous
Open High Low Last Chge Vo|umeopen , nt
0 0
0 0
0 0
0 0
0 0
0 0
o 740074007400
6900 716767657167
6702 695565806897
6500 653063806432
6150615061506150
6150 615061506150
Open
*CASH*
JUL 02
SEP 02
DEC 02
MAR 03
MAY 03
2070
1650
1582
1620
1670
Volume Open_lnt
1914 9610
very optimistic. All of this does
not look good for strong sales of
dairy products.
Another reason for lackluster
sales of dairy products, however,
may be due to the fact that retail
prices for cheese, butter, and ice
cream have actually gone up this
year despite a big drop in dairy
ingredient costs.
Recall that last summer, ice
cream makers were very unhap
py with the dramatic rise in
wholesale butter prices, which
rose from $0.91 per pound in
January 2000 to a peak of $2.09
per pound in August 2001. High
er butter prices translate directly
into higher costs for cream, the
major dairy ingredient used to
make ice cream. Ice cream mak
ers complained they could not
pass along all of these higher in
gredient costs to consumers else
they would risk losing sales. After
all, ice cream is an “impulse
item.” If it is too expensive, con
sumers will push their grocery
carts right past the frozen dairy
(Turn to Page A2l)
-100
+3OO
+ 195 •
+97
unch
unch
High
2254
2132
1710
1650
1660
1670
Low
2254
2054
1640
1580
1620
1670
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 2.38 bu., 4.27 cwt.
Wheat, N 0.2 2.67 bu., 4.45 cwt.
Barley, N 0.3 1.43 bu., 3.07 cwt.
Oats, N 0.2 1.88 bu., 5.85 cwt.
Soybeans, No.l 4.74 bu., 7.92 cwt.
Ear Corn 67.56 ton, 3.38 cwt.
Alfalfa Hay 112.50 ton, 5.63 cwt.
Mixed Hay 110.00 ton, 5.5 cwt.
Timothy Hay 99.25 ton, 4.96 cwt.
Chge
-16
+ 14
+ 6
+2O
+3O
+24
Last
2254
2120
1696
1632
1660
1670