Packer
U.S. House Agriculture’s Subcommittee hearing on Wednesday provided an opportunity for animal agriculture stakeholders to detail their priorities they hope to achieve from lawmakers actions.
After Tyson Foods reports anemic first quarter sales and downgrades its forecast, The Wall Street Journal editors wrote, “This doesn’t look like an antitrust conspiracy or market oligopoly.”
Packers increase their slaughter ahead of the first holiday weekend of the summer and the spread between North and South widens back to $6 per cwt.
Negotiated cash cattle prices declined for the fourth consecutive week in the South but held steady in Northern trades.
A broad view of recent carcass cutout values shows plenty of strength in wholesale boxed beef prices. To contrast current values to a year ago, CAB and commodity Choice cutouts are 14% higher.
Packers are working to remain profitable, using basis for extended delivery, freighting cheaper inventory to areas of regional cash strength and running harvest at a snail’s pace.
Tyson Foods Inc posted a surprise second-quarter loss on Monday and cut its full-year revenue forecast on falling beef and pork prices, sending the U.S. meat packer’s shares tumbling 9% before the bell.
Negotiated cash cattle prices declined for the third consecutive week in a moderate to active trade. Wholesale beef prices also declined yet remain above seasonal averages.
Effective immediately, JBS USA will begin the transition of 10 facilities to its newly created company, JBS Sanitation.
JBS USA is ending contracts with a U.S. company fined for hiring kids to clean meat plants, the unit of Brazilian meatpacker JBS SA said on Monday, adding it is bringing the work in-house at some facilities.
A softer market for the first time in a month, but its a breather we have all been expecting. Keep an eye on the basis between cash and futures as packers will use it to gain leverage.
Negotiated cattle prices fell short of steady on the week, though fundamentals point to further gains in the short-term. Cattle on feed found 4.4% fewer cattle at the bunk, but placements were mildly surprising.
USDA announced $125 million will be available through two new grant programs that will create more options for meat and poultry farmers by investing in independent, local meat and poultry processing projects.
Packers continue to haul cheaper inventory to regions grinding higher and peel back harvest to stall the market. This is all friendly, one does not cut kills with peak demand on the forefront.
USDA sent a letter to the 18 largest meat and poultry processors to request all actors in the food supply chain take steps to prevent or eliminate illegal child labor, which has risen 69% since 2018.
Cattle markets surging $10 higher over the past two weeks have pushed the 5-area average price to record levels and the rally may continue this week.
With cattle feeders in the driver’s seat, packers will seek leverage to price cattle for future delivery. They aren’t looking to do feeders a favor with the strategy.
Creekstone Farms has announced it has broken ground on a 20,000-square foot learning center adjacent to its Arkansas City, Kan., headquarters.
Last week’s huge cash rally featured all packers vying for position to tie up cattle in all regions. Yet, packers aren’t gaining inventory.
New research helps policymakers understand the role multi-plant coordination plays in the fed cattle market as they consider policies aimed at increasing negotiated trade with the hope of improving price discovery.
Packers put wheels under cattle to buy themselves time as Southern cattle are hauled to Northern plants.
Northern feeders have experienced considerably more adverse weather and muddy pen conditions than southern yards, contributing to the tightening supply of well-finished cattle.
Tyson Foods gave its chicken suppliers two months’ notice of its plan to shut a Virginia processing plant in May, raising concerns among farmers and legal experts about Tyson’s compliance with antitrust regulations.
National livestock groups are uniting to support Congressional efforts to expand opportunities for industry to invest in meat packing capacity.
The management of Brazilian meatpacker JBS SA said on Wednesday it “will be selective” in relation to launching share buyback programs and also regarding acquisitions given instability in international markets.
A proposal for a new 320,000-square-foot beef processing facility has been submitted for a site in eastern Kansas by an unnamed retailer.
Beef packers show their willingness to rely on their captive supplies as they struggle to hold a lid on rising cattle prices. Tighter supplies in the coming weeks will force their hand.
The 2023 bull market entered March with modest gains for fed cattle and some impressive gains for feeder cattle and calves. The spring seasonal rally is likely to extend well into April.
Packers grudgingly bid higher for the week in what was called a light to moderate trade. Cattle feeders were firm sellers as some passed on those higher bids late week.
Packers waited as long as possible last week, grudgingly pushing the market higher with trades well into Friday’s happy hour and some even on the weekend.