Packer
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Cash cattle markets backed up last week from a steady upward movement due to a boiler explosion, and the three days of unexpected downtime at Cargill’s Dodge City plant.
Following an explosion Oct. 17, Cargill says it is sending live cattle to other facilities but expects its Dodge City cattle receiving operations to resume early next week.
Cargill’s Dodge City, Kan., beef processing facility was back online Monday morning after an explosion on Wednesday, Oct. 16, 2019.
Cattle feeders continue to take advantage of the advancing cash market, with higher sales in all regions last week.
Cargill says it closed its Dodge City beef packing and processing facility on Thursday after an explosion injured two employees.
Citing concerns about foreign ownership of U.S. companies, two U.S. senators have asked Treasury Secretary Steve Mnuchin to open a formal investigation of JBS SA.
While many cattlemen were surprised and frustrated with market reactions after the fire, Derrell Peel says the type and duration of price behavior are exactly what is predicted by market economics.
With seven weeks passed since the fire at Tyson’s Finney County, Kan. plant, the impacts and resulting ripple effects are clearer now and are fading as expected.
The August fire at Tyson’s Finney County, Kan., beef facility too 6% of slaughter capacity offline and forced packers to scramble to pick up the slack at other harvest locations.
All cattle feeding areas were able to take advantage of the packer’s need for cattle last week and cash prices moved higher.
Beef production will increase this year, and that remains a key driver for the price of fed cattle.
A fire Friday afternoon at Cargill’s Doge City, Kan., facility was quickly extinguished and damage to the plant was minimal and no impact on operations is expected.
The $1 threshold seemed to be a sticking point for cattle feeders last week, and many held firm on Friday which could prove to give cash prices a needed boost.
Cash fed cattle continued a downward spiral driven by losses in CME Live cattle futures. Tyson announced its Kansas beef plant won’t be fully operational until January.
The lack of aggressive trade was noticed mostly in the south where cash trade could not get any higher than $1.00 last week.
Cash fed cattle traded at lower prices ahead of the Labor Day weekend, while steer and heifer calves sold steady to higher at auctions.
If anything good comes from the Tyson fire, maybe it will be that everyone will realize the burden of our over-committed fed cattle supply.
USCA calls on the USDA and the CFTC to “convene cattle market participants to discuss concerns related to price transparency and true price discovery.”
Brazil’s agriculture minister says Indonesia has authorized beef exports from 10 Brazilian meat packing plants.
U.S. Ag Secretary Sonny Purdue has directed USDA’s Packers and Stockyards Division to launch an investigation into recent beef pricing activity.
Citing heightened concerns about environmental preservation and sustainable beef production, JBS SA is using satellite technology to monitor suppliers.
Poor performance from CME futures on Friday limited what cattle feeders could gain back on the cash market from the declines over the last few weeks.
While the fire was unfortunate, the industry suffered more from an over-reaction by cattle markets in the week immediately following the fire.
Packers were hesitant to offer a bid on cattle early last week, and after a $5 decline, feeders still have many unanswered questions about the impact of harvest capacity.
Kansas Gov. Laura Kelly says the fire at Tyson’s beef facility will affect many individuals and businesses in the beef industry that fuels western Kansas, and offered the state’s support.
In a head-scratching week of data, estimated cattle slaughter was 9,000 head higher following the Tyson fire, cattle prices were down 5% or more, and yet wholesale beef prices rose 9%.
AgriTalk host Chip Flory and Drovers editor Greg Henderson discuss the impact of the fire at Tyson’s facility in Kansas and the impact on cattle markets.
Cattle markets continued reeling Tuesday as both CME Live Cattle and Feeder Cattle set contract lows following Monday’s locked limit-down performance.
Packer participation in the cattle market was an issue even before Friday night’s fire at Tyson’s Holcomb, Kan., beef packing facility.