Packer
Light cash trade continued with a wide price range. Two of the major packers were active in the market, with one actively making an effort to support prices.
R-CALF USA has asked President Trump and House and Senate leaders to conduct a review the beef supply chain and consider “whether a physical and geographical restructuring of the meatpacking industry is required.”
“We need more small plants!”—-The tiny violin solo of the beef industry. To start: there are 853ish USDA beef kill plants in the US, the big four run 27 of them.
Cargill’s High River, Alta., beef harvest facility has slowed to one shift beginning this week to prioritize the health and safety of employees, reducing harvest to about 1,500 head per day.
Dozens of workers at Tyson’s Pasco, WA, beef plant have tested positive for COVID-19, but the plant will remain open under heightened health and safety procedures.
JBS USA says its Greeley, Colo., beef plant will be closed through Tuesday for “deep cleaning” in an attempt to stop the spread of COVID-19 among its thousands of employees. Two employee deaths have been reported.
Another steep decline in both fed cattle and feeder cattle was reported last week. Negotiated cash fed cattle sales were the second smallest since mandatory price reporting began in 2001.
Officials in Weld County , Colo., and Hall County, Neb., are monitoring cases of COVID-19 that are linked to JBS USA beef packing facilities.
Texas congressman Mike Conaway told AgriTalk radio he believes an investigation into packer profits is likely, but encourages cattlemen and processors to continue working to feed Americans during the COVID-19 crisis.
Some American beef packing companies are adding to worker’s hourly pay and sick leave in response to the COVID-19 emergency. Some will earn an additional bonus for working all their shifts through May 3.
Packer margin is significant. However, why is packer profitability the only focus, and we are not as outraged about the other “elephant in the room” issue within our market?
The U.S. and global economy is in uncharted waters. There are many unknowns about the timing, severity and aftermath of the disease. For beef, there are longer-term questions about the overall impact on demand.
Cash fed cattle prices traded lower as futures prices set new lows for the week before a Friday rebound.
While cash fed cattle traded lower the past two weeks, traders anticipate a higher market toward spring as cattle numbers tighten seasonally and beef demand improves.
There was some hesitation among buyers this week as the CME futures had a downward turn and sell-off early in the trading period. Steers and heifers sold lower at auctions.
Cattle feeders were unable to push the cash market higher, settling for mostly steady money as packers were noticeably less aggressive with much narrower profit margins.
A pair of lawsuits filed last year involving a packing company and two producers have been dismissed following a confidential settlement.
Lawyers for America’s largest beef packing companies asked a federal judge on Friday to dismiss the class action suit filed against them by a group of ranchers last year.
Over the past 10 weeks, cattle feeders have gained market leverage in a rally the likes of which have not been seen in many years.
Packers were aggressive in obtaining inventory to start the new year, and the result was a cash cattle market that gained $2 in both the north and south.
Packers were eager to push their inventory higher last week and prices in all regions responded by moving $1 to $2 higher.
Steers and heifers sold at auctions this week steady to $3 lower. AMS said with the holidays and the end of the year fast approaching, many auction markets saw heavy runs of cattle.
Sharply higher carcass weights have boosted beef production, though another round of winter weather hitting parts of cattle feeding country may temper that in the last few weeks of the year.
In anticipation of reduced harvest during the holidays, packers are sitting in a good inventory position going into the next few weeks.
Brazilian federal prosecutors have charged JBS S.A. and its holding firm J&F Investmentos, along with 14 other individuals, for alleged fraud in the approval of investments and loans by national development bank.
Last week was one of the last chances for cattle feeders to push the market up to the $120-plus price range. Three packers were in the market to buy cattle by feeders chose to settle for steady money.
NCBA says it will work with the USDA’s Food Safety Inspection Service (FSIS) to address the Agency’s longstanding policy on geographic origin statements for beef.
Cash fed cattle trade was active on Wednesday, surging $2 to $4 higher the day before Thanksgiving, with demand strong in all major cattle feeding regions.
The cash cattle market continues to be the best broken-record producers ever heard of late as three of the four major packer participated in the live trade last week.
Cash cattle traded higher again and all four major packers participated in last week’s trade, including Tyson for the Finney County, Kan., plant.