Al6-Lancaster Farming, Saturday, August 17, 2002
GRAIN, CATTLE. HOG,
& MILK BFP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Thursday, August 15, 2002
Com
08/14/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
*CASH*
SEP 02
DEC 02
MAR 03
MAY 03
JUL 03
SEP 03
DEC 03
MAR 04
08/15/02
08/15/02
JUL
DEC
Total
08/14/02
Soybeans
08/14/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
*CASH*
SEP 02
NOV 02
JAN 03
MAR 03
MAY 03
JUL 03
AUG 03
SEP 03
NOV 03
NOV 04
Total
08/14/02
Soybean Meal
*CASH*
SEP 02
OCT 02
DEC 02
JAN 03
MAR 03
MAY 03
JUL 03
AUG 03
SEP 03
OCT 03
DEC 03
08/14/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
Total
08/14/02
Weekly Dairy Market Outlook
Sarah Roth And
Ken Bailey
Penn State
August 8,2002
Farm Bill Basics:
An Overview Of
The Dairy Title
• Sign-up begins Aug. 13
• Few details available.
• Transition payment
likely be $1.04/CWT.
The 2002 Farm Bill, passed on
May 13,2002, has several compo
nents that will impact the U.S.
dairy industry. The component of
most interest to the dairy indus
try is the dairy price support pro
gram and the Milk Income Loss
Contract (MILC) program.
USDA announced that sign-up
for the new MILC program will
begin Aug. 13. Producers should
contract their local Farm Services
Agency (FSA) office.
Dairy producers will likely re
ceive (two--kinds—ef- payments
linder.the new, MULC oroaram.
High
2780
2770
2884
2924
2930
2920
2714
2574
2620
Open
2754
2870
2914
2920
2914
2710
2572
2610
2634
2440
2634
2440
Volume Qpen_lnt
133745 521495
High
5820
6010
5794
5790
5760
5680
5634
5530
5450
5244
4900
Open
6010
5780
5780
5730
5650
5630
5530
5450
5224
4900
Volume Qpen_lnt
76389 208889
High
19500
1940
1872
1850
1835
1810
1770
1752
1730
1695
1650
1645
Open
1935
1867
1845
1832
1805
1770
1750
1730
1695
1650
1625
Volume Open_lnt
44894 131686
The first will be a transition pay
ment that will cover the period
December 2001 through either
August or September 2002. The
payment rate for this program
through August is $1.04 per
CWT. The second type of pay
ment will be monthly payments
through Sept. 30, 2005. These
payments will be made for
months where the Class I price of
milk in Boston falls below $16.94
per hundredweight (CWT). Pay
ments will be made only on quan
tities of milk up to 2.4 million
pounds during a fiscal year.
will
Let’s take a closer look at how
these deficiency payments will
work. Suppose a producer
generates 150,000 pounds of milk
per month on average. In a year
the producer will generate rough
ly 1.8 million pounds of milk, less
than the 2.4 million pound limit.
Thus, this producer will receive
payments throughout the year on „
100, nercent of their milk market-' ’
Last
2780
2722
2840
2886
2894
2886
2680
2560
2620
Low
2780
2700
2810
2864
2864
2860
2664
2524
2584
2610
2424
2610
2424
LOW
5820
5910
5700
5700
5684
5610
5574
5530
5400
5194
4900
Last
5820
5922
5730
5726
5706
5626
5584
5530
5400
5196
4900
Last
19500
1883
1823
1803
1792
1769
1736
1734
1711
1685
1640
1637
LOW
19500
1875
1818
1799
1790
1767
1735
1730
1710
1685
1640
1625
mgs.
What is less clear at this time,
however, is what will happen
with producers who will exceed
the 2.4-million-pound cap in a
given fiscal year. USDA will
probably release regulations at
the time of the sign-up regarding
how these producers will qualify
for program payments.
As stated earlier, the payments
under the MILC program will be
determined on a monthly basis.
To see how this works, let’s take
July 2002. The Boston Class I
price was $13.87 per CWT. Since
this price is below the $16.94 per
CWT lower limit specified in the
Farm Bill, the producer qualifies
for a deficiency payment for the
month of July. The payment is
computed as 45 percent of the
positive difference between the
Boston Class I price and $16.94.
In this example, the difference is
$3.07, and 45 percent of that is
$1.38. Thus, our dairy farmer
who produces 150,000 pounds of
Lean Hogs
Date
08/14/02 *CASH*
08/15/02 Oct 02
08/15/02 Dec 02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
Chge
+ 52
-6
-6
-2
-2
unch
-10
+ 2
+ 10
Composite Volume Open_lnt
08/14/02 5866 33114
-20
-12
Live Cattle
Date
08/14/02 *CASH* 0 620062006200 +lOO
08/15/02 Aug 02 6557 660765556585 +2B
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
Chge
unch
-16
+ 12
+ 24
+ 14
Composite Volume Open_lnt
08/14/02 10914 93519
+ 12
+l4
unch
unch
Pork Bellies Previous Previous
Date Open High Low Last Chge ™Open hit
0 0
82 80
170 788
1 26
0 2
1 3
+2
unch
08/14/02 *CASH* 0 630063006300
08/15/02 Aug 02 6310 653563106535
08/15/02 Feb 03 6255 632561756250
08/15/02 Mar 03 6190 620061706190
08/15/02 May 03 6350 635063506350
08/15/02 Jul 03 6425 6425 6425 6425
Chge
-200
-27
-14
-18
-11
-13
-10
-4
-3
+3
+4
+7
Composite Volume Open_lnt
08/14/02 254 899
Oats
08/14/02
08/15/02
08/15/02
08/15/02
08/15/02
08/15/02
Total
08/14/02
~ it- li i * /-u Previous Previous
Open H.gh Low Last Chge Vo|ume open Jnt
0 0
3371 17095
1355 10563
0 474547454745
3650373236353677
3685375036853717
4490452044404445
5055 515050505120
5780 589057805890
5970 605059606050
5930 603059306020
5800 580557505805
5480548054805480
Feb 03
Apr 03
May 03
Jun 03
Jul 03
Aug 03
Oct 03
. T , Previous Previous
Open High Low Last Chge volume Openjnt
0 0
2658 4706
4733 44853
1658 22843
1109 13188
596 5885
136 1985
24 58
Oct 02 6875 6895 6842 6865 -2
Dec 02 7060 7075 7040 7057 -5
Feb 03 7170 718071557160 -10
Apr 03 7220 723072057225 +5
Jun 03 6750 678067406745 -2
Aug 03 6790 679567806780 unch
Open
*CASH*
SEP 02
DEC 02
MAR 03
MAY 03
JUL 03
1902
1894
1830
1784
1750
Volume Qpen_lnt
1767 11198
CWTs produced during July, or
$2,070.
USDA is still sketchy regard
ing the definition of a “dairy op
eration.” All they are saying for
now is the following:
“A dairy operation is any per
son or group of persons who as a
single unit, as determined by
CCC, commercially produces
and markets cow milk and has
production facilities located in
the U.S. Producers on dairy oper
ations are not permitted to recon
stitute a dairy operation for the
sole purpose of receiving addi
tional payments.”
Other provisions of the Farm
Bill related to dairy include:
• Authorization for a national
Johne’s disease control program
• Requirements that dairy im
porters pay a dairy promotion as
sessment equivalent to that of do
mestic producers
• Increased funding for dairy
and livestock producers under
the Environmental Quality In-
-25
-33
+22
-300
+295
+8
+3O
unch
unch
High
2034
1920
1900
1830
1830
1750
Low
2034
1866
1850
1794
1780
1750
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 2.70 bu., 4.83 cwt.
Wheat, N 0.2 3.05 bu., 5.09 cwt.
Barley, N 0.3 1.58 bu., 3.37 cwt.
Oats, N 0.2 1.74 bu., 5.42 cwt.
Soybeans, No.l 5.43 bu., 9.06 cwt.
Ear Com 73.30 ton, 3.67 cwt.
Alfalfa Hay—116.25 ton, 5.81 cwt. '
Mixed Hay • 112.50 ton, 5.63 cwt. |
Timothy Hay 111.75 ton, 5.59 cwt.
1895
453
98
177
86
25
Chge
+4O
+ 14
+ 10
+ 24
+ 52
+ 30
Last
2034
1906
1880
1830
1830
1750