Tyson Foods Inc shares climbed to their highest level in more than a year on Monday as the No. 1 U.S. meat processor said low prices for livestock feed will help boost results again next year.
U.S. beef packers including Tyson Foods and Cargill are racking up historically high margins, thanks to slumping cattle prices amid a supply glut and as Americans turn to beef for their backyard summer barbecues.
Anecdotal evidence and supply observations suggest packers have recently had a negotiating advantage over feedlots. Packer margins continue to be wide and the supply of cattle on feed continues to be high.
To help support California food bank’s efforts to meet demand for protein during a difficult fire season, Cargill donated nearly 50,000 pounds of beef to local families in California.
As annual reviews are more enjoyable if the evaluation shows improvement, marketers of high-quality beef and cattle like to see a measurable margin for the extra effort.
With the passing of Memorial Day and the unofficial start of summer upon us, sellers of highly marbled, finished cattle are wondering where the demand is.
Beef packer continued with a stranglehold on cattle markets last week, buying a few cattle to fill their needs at lower money and keeping operating margins historically high.
A strong domestic economy and robust exports have buffered beef, and hence, cattle prices against near record large U.S. beef production and all-time highs in competing meats and poultry supplies.
While consumers have long preferred a highly marbled, juicy steak or roast from the rib and loin, the industry struggles to achieve much premium from Choice over Select on the lower priced cuts.