Packer
Last week only two days of harvest were considered cash trade. This lack of cash trade should give a clear indication that the corporate or “turn in” cattle are influencing the quick decline in the market.
A federal judge in Minnesota granted another class action pork price-fixing settlement between JBS USA and Commercial and Institutional Indirect Purchaser Plaintiffs on April 15.
One Kansas packing plant sat idle half the week for maintenance while others were reluctant bidders, leaving feeders with more cattle than available shackle space.
The spring rally in negotiated cash cattle prices continued last week as trade in the South developed early in the week with packers more aggressive than in recent weeks.
If the 2019 ratio between wholesale beef prices and cash fed cattle prices existed today, cash cattle prices would be $136 per cwt. That would amount to an additional $252 for a 1,400-pound fed steer.
Cash cattle prices in all regions saw higher prices for the second consecutive week as packers found tightening supplies of market-ready cattle.
The Department of Justice said Cody Easterday agreed to repay more than $244 million in restitution and faces a maximum penalty of 20 years in prison for a fraudulent scheme dating back to 2016.
A federal court has removed a provision of the New Swine Slaughter Inspection System that enabled pork processors to establish maximum line speeds.
Sustainable Beef LLC announced plans to build a new, 300,000-square-foot beef packing facility in North Platte with capacity to process 400,000 cattle annually.
National Beef Packing Company, LLC, announced plans to increase processing capacity and production at its Iowa Premium facility located in Tama, Iowa. Capacity is expected to be increased to 2,500 head per day.
The calendar still read January the last time cattle prices saw an advance. Cattle feeders believed they were gaining market leverage and demand might soon spike. Instead, cattle finished a sixth week trading steady.
There appeared to be more cattle trade than what we have seen for several weeks, but with only one or two packers needing cattle it was difficult for feeders to push the market higher.
While Tyson’s lawyers were filing a lawsuit on Monday against one of the packer’s largest cattle suppliers, the ink was still drying on the sale of one of that supplier’s feedlots to one of Tyson’s competitors.
Kansas Gov. Laura Kelly said Thursday that every meatpacking plant worker in Kansas who wants a COVID-19 vaccination can get one by the end of next week.
Packers, as usual, were in a position of leverage and needed very little cattle for the next week’s harvest. This continues to be the biggest problem with driving the cash price higher.
Beef production slowed to a virtual standstill in the South due to extreme winter weather. Heavy demand on electricity and natural gas limited packers from running at capacity, and their need for inventory was limited.
Four packers participated in negotiated cash trade in the South last week, but their bids were disappointing as none needed additional inventory.
Negotiated cattle traded steady to higher for the week with moderate volumes ahead of a major winter storm that is likely to increase feeding costs and reduce market weights.
Claiming Easterday Ranches conducted a “fire sale” of one of its feedlots just days before filing for bankruptcy, Tyson Foods asks a U.S. Bankruptcy Court to appoint a trustee to take control of the Easterday estate.
Cash cattle markets continued its painfully slow climb higher last week, and most feeder anticipated the gain would be faster. Feedyard costs are on the rise, and any gains are most welcome.
U.S. beef exports finished 2020 down 5% in both volume and value, but finished the year on an upswing with fourth quarter volume up 4.4% from 2019 and posting one of the best months on record in December.
Regulatory activity may be the single greatest threat to U.S. food production as it impacts the entire supply chain from the producer to the consumer. It appears U.S. regulatory activity is increasing.
Tyson Foods, Inc., is piloting a new Matrix Medical Network program that assesses, addresses, verifies and monitors the effectiveness of Tyson’s efforts to protect its workforce from COVID-19.
U.S. meat and poultry processor Tyson Foods Inc was sued on Tuesday for allegedly defrauding shareholders with misleading disclosures about its ability to combat the spread of the coronavirus in its facilities.
Cattle feeders showed they have the resolve to fight for higher bids during last week’s cash cattle trade. The market rallied $3 as the futures market continues to suggest better days ahead.
A U.S. congressional panel is investigating three large meatpacking companies for possible worker-safety violations following reports that hundreds of industry workers have died of COVID-19.
Claiming losses of “more than $200 million” in connection with “200,000 cattle that did not exist,” Tyson asks for a court-appointed receiver to takeover Easterday Ranches in Washington state.
On-feed numbers indicate that packers could be running low on committed cattle, which should force some packers back into the cash market in the coming weeks.
Cattle feeders were left on the sidelines as every other cattle/beef market segment saw a price rally. Futures markets set new highs, but cash cattle have not reached $112 for seven months.
Cargill announced it will temporarily idle two of its protein processing facilities for scheduled maintenance. The idling of the facilities is unrelated to the COVID-19 pandemic.