Packer
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.
The indefinite closure of Tyson’s Holcomb, Kan., facility creates the potential the cattle “marketing pace will slow down and carcass weights will increase.”
Packers enjoyed a comfortable inventory last week, and many have stopped Saturday harvests, which helped push cash cattle prices $1 per cwt. lower.
The fluctuation in the cash price in this trade seemed to be mostly dependent on the location of the cattle, with prices ranging from $114-$116, with dressed trade at $182-$185.
Over the next few weeks patience and a calm trigger finger could be profitable to the cattle feeder as the supply of market-ready cattle declines.
Brazilian reporters claim JBS SA has been buying cattle from ranches grazing cattle on deforested land in the Amazon, a practice forbidden by the Brazilian government.
Cattle feeders were hopeful that last week was the bottom of the decline in cash cattle prices, but a negative corn report helped prices even lower.
Tyson Foods’ executives told investors its beef margins are benefitting from a structural shift higher due to both domestic and global demand growth and a favorable supply of cattle.
Packers were able to keep the market suppressed as the trade began last week at $2 back of the previous week.
Fed cattle trades were few and far between last week, with most bids lower and packers seemingly uninterested.
Prices were higher for all classes of cattle for the week ended Oct. 13, with cash fed cattle trading at $111 per cwt., $2 higher. Cattle sold on a dressed basis at $175 per cwt., $2 to $3 higher.
In letter, EU demands improved checks on meat safety.
Post-scandal squeeze on finances sparks asset sales, cutbacks.
ABC and a South Dakota meat producer announced a settlement Wednesday in a $1.9 billion lawsuit against the American network over its reports on a lean, finely textured beef product that critics dubbed “pink slime.”
Wesley and Joesley Batista have combined debt of $790 million.
Jury selection started Wednesday in a more than $1 billion defamation case over ABC news reports on a South Dakota meat producer’s lean, finely textured beef product, which critics have dubbed “pink slime.” The trial in state court is scheduled to last until late July.
JBS owners Wesley and Joesley Batista said to have agreed to a plea bargain.
JBS’s founders are known for both big business and scandals.
Meat producers may lose as much as 10% of market share.
Zhang Lian has 270 tons of frozen Brazilian beef on a ship steaming toward Shanghai that he may not be able to get through customs when the vessel arrives next month.