Al6-Lancaster Farming, Saturday, September 6, 2003
GRAIN, CATTLE, HOG,
& MILK BFP
FUTURES MARKETS
Markets Courtesy of Chicago Board and Mercantile Exchange
Closing Bids: Thursday, September 4, 2003
Com
Opining {High Low Closing [Settle jNet Chg
03Se& f 237 3/4 1 243:237 1/2 1 243 242 1/4 :242 1/2 +46
244 1/2 247 1/4 243 1/4 246 3/4 247 1/4 !
OjSlfe 250 1/41252 1/4 - 249 2513/4 252 1/4 (
[~252~1/2 ;2541/41251 3/4[253~3/4 |254 1/4 \
1/21 ' 255 [252 3/4
248:248 3/42471/4
04Dp-' r 243 3/4'244' 1/2 r ’
2491/4 249 1/2 249 1/4 [249 1/2
05Mar
05Jiil
lisr
239
Opening
Soybeans
Month Opening (High (Low j
03Sep I 590 1/2 607 590 1/2 [606 1/2
03Nov j 585 589 1/4 581 1/2! 589 587 3/4
584|590 1/4 589 1/2
04Jap
04ftlar
587 590 1/2
583
tijx 1 r*~ “ “■
577 1/2 1
l/2'
04An£
iqajjL __
lo4to . 540 541 538 1/2:
j Month ’Opening [High j Low |
569 569
Soybean Meal
|
199.01
181.5
179.8 1
183.5
181,91
178.5
177.0
ifljjP IM-Sf
bins': i«sj
Month
Opeh||ig|
Aug. 30,2003
FEDERAL ORDERS
LAG MARKETS
• July PPDs small, or nega
tive.
• August advanced prices a
disappointment.
• Class 111 futures still strong.
With all the discussion of high- negative PPDs. The PPD, or Fre
er milk prices, dairy farmers are ducer Price Differential, is simply
disappointed with the milk the “uniform” or “blend price”
bheek» they -have- keen -receiving»•oomputec} -by your Market Ad-
243 243 3/4 244 1/2
| ' 255 n
239 j 239
239
,ow
[High
587'582 1/2 [585 1/2
579; 575[5781/2
5791
5751577 1/2
568 568
198.0
204.5
181.8]
185.9
179.61
183.01
179.8 i
182.0|
[181.5
f 179.2
181.51
176.8 |178.8b 179.0 a 178.9
176.6 179.0 1179.0;
174.5 [ 175.0 [ 175.01
172.0 | 172.0 bj 172.5 a 172.2
166.5 165.0 165.3 b[165.5 a: 165.4
165.5 [164.5 164.8 bj 165.0 a 164.9!
High |Low Closing Settle |Net Chg
179.7
179.0
[176.0
175.0
lately. In some cases, there are
negative numbers on the check,
suggesting money is being taken
out. And the most recent advance
milk prices were a big disap
pointment. There is a reason for
all of this.
First, let’s discuss those low or
255 [254 3/4 T
254 1/2
248
"Closing
Closing
605
579 •
578 |577 3/4,
553 n
540 538 1/2 539 1/4
Closing , [Settle Net Chg
■ C^osHlg.
204.0 j 204.5 i
1853 185 9 (
182.6 [ I
181.5'! 181.8 i
181.5 1
247 +26
252,
254 !
+ 16
+ 14
+l2
Unch
i 248
+4
244
2491/2 +2
255’
239;
+4
[Settle |Net Chg
Settle Net Chg
605 3/4 -+ | *> 4
588 1/4 +74
589 3/4!
+72
585 1/21
578 3/4 i
+5O
+44
568
+4O
553 [
+2O
+ 10
[g^tlejNetChg;
+64
204.2
185.6:
+37
+2B j
182.7
+ 19!
181.6!
+2O
+2O,
+2l
+s',
+2'
-ll
ministrator, minus the Class 111
price. In most months, producers
receive a positive PPD suggesting
a benefit from being involved in
the federal milk marketing order
program. But every once in
awhile, the calculation for the
PPD could result in a low or neg
ative number if the Class 111
price runs up very quickly.
For example, PPDs on the July
milk check, which producers re
ceived about Aug. 15, had a very
low or in some cases a negative
PPD. In the Northeast order, the
July PPD was just $0.68 per
CWT. In the Mideast federal
order, the PPD was -$O.lO per
CWT. For the Upper Midwest
order, the PPD was -$0.41 per
CWT. In fact, producer milk
pooled in the Upper Midwest
order went from about 2 billion
pounds (with a 15.6 percent Class
I utilization) in June 2003 to just
660 million pounds in July (with
a 49.7 percent Class I utilization).
Co-ops and/or proprietary cheese
plants simply “depooled” their
milk on the order just to avoid
Lean Hogs
Date
“CASH*
Oct 03
Dec 03
Feb 04
Apr 04
May 04
Jun 04
Jul 04
Aug 04
Oct 04
09/03/03
09/04/03
09/04/03
09/04/03
09/04/03
09/04/03
09/04/03
09/04/03
09/04/03
09/04/03
Composite Volume Open_lnt
09/03/03 10861 42228
Live Cattle
Date
09/03/03 *CASH* 0
09/04/03 Sep 03 8670
09/04/03 Oct 03 8510
09/04/03 Nov 03 8285
09/04/03 Dec 03 8287
09/04/03 Feb 04 8135
09/04/03 Apr 04 7890
09/04/03 Jun 04 7365
09/04/03 Aug 04 7255
09/04/03 Oct 04 7200
Composite Volume Open_lnt
09/03/03 22381 127513
Pork Bellies
Date
09/03/03 '"CASH* O
09/04/03 Feb 04 8325
09/04/03 Mar 04 8310
09/04/03 May 04 8440
09/04/03! Jul 04 8640
09/04/03 Aug 04 8300
Composite Volume Openlnt
09/03/03 343 1639
Oats
146 3/4
1511/2
j j.__
the negative PPD.
Why a low or negative PPD?
Simply put, the cheese price used
in the calculation of the Class 111
price rose rapidly from $1.1464
per pound in June to $1.3497 per
pound in July. The cheese price
is used to compute the Class 111
price. Thus the Class 111 price
rose from $9.75 per CWT in June
to $11.78 per CWT in July. And
don’t forget the Class IV prices.
It rose from $9.76 per CWT in
June to just $9.95 per CWT in
July not much of a change.
Given the lags in the calculation
of the Class I prices, the Class 111
price simply got ahead of the
other class prices, resulting in a
negative or low PPD.
Then there was the mid-month
advanced payments that produc
ers recently received. This partial
payment is equal to just 15 days
of milk shipments. Some produc
ers expect this price to be a fore
cast of their upcoming milk
check. Producers who were ex-
~ U- U¥ I Previous Previous
Open High Low Last Chge Vo , ume open lnt
0 o
5842 23128
3900 12071
834 4166
144 1571
56 354
52 589
27 235
3 81
3 32
0 479547954795 unch
5600 561055325607 +3O
5525 552554555495 -15
5665 568756305682 +25
5895 591558705907 -13
6240 624562356245 -5
6465 649564606480 +3
6220 623062056210 -10
5960 596059605960 -15
5350 535053505350 -20
~ «■ ui ¥ Previous Previous
Open High Low Last Chge Vo|ume o pen_lnt
0 0
167 592
9756 55770
1 22
827082708270 unch
867085808630 unch
853084258490 +8
8285 82608260 -30
830082208277 -10
813580408092 -25
789578227862 -15
736573127345 -10
725572557255 unch
720072007200 +2OO
~ ,Previous Previous
Open High Low Last Chge VoKinle o pen_lnt
O ()
341 1567
2 30
16
26
8000 8000 8000 +3OO
8430 83 15 841 5 +125
831583008315 +65
8440 8440 8440 +65
8640 8640 8640 +65
830083008300 unch
iSJlpslj
145 3/4 b
145 3/41143 1/2
149 1/41146 1/2
152 1/211511/2 152 1/4
155 [155 3/4 b]
155 3/4'
150 n
r ' 145 n
Closi
(Turn to Page A 37)
6256
3464
2085
645
V s » “I'li
*V w- •» n«!l
fettle.
1 145 3/4!
149 149 1/4
152 1/4
’ ~ 1155 3/4;
145|
i_ _ I
1 150 Unch
(Settle Net Chg
150 n
iing
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 2.74 bu., 4.90 cwt.
Wheat, N 0.2 3.38 bu., 5.64 cwt.
Barley, N 0.3 1.91 bu., 4.09 cwt.
Oats, N 0.2 1.83 bu., 5.70 cwt.
Soybeans, No.l 5.61 bu., 9.37 cwt.
Ear Com 86.68 ton, 4.33 cwt.
Alfalfa Hay 111.75 ton, 5.59 cwt.
Mixed Hay 120.50 ton, 6.03 cwt.
Timothy Hay 124.25 ton, 6.21 cwt.
36348
19398
1221 1
3042
130
Net Chg
+22
+26
1491
+ 14
+ 16
150
Unch
Unch