Packer
Check out the Sterling Marketing Pork Profit Tracker ending week of May 10.
USDA issued a proposed rulemaking on Monday that would effectively close the “Product of the U.S.A.” loophole that has been in effect since the repeal of COOL in 2015.
A federal ban on price gouging does not address the real causes of inflation, says Meat Institute President and CEO, Julie Anna Potts.
Beef packers were forced to pay up to acquire inventory last week and the result was a boost to feedyard profits and increasing packer losses. Pork prices and margins saw little change.
The summer slump has cut average industry cattle feeding margins by a third yet profits remain historically large. Pork margins also retreat from recent highs.
A solid rally for cash fed cattle coupled with declining total feeding costs helped boost cattle feeding margins nearly $85 per head above the previous week. Pork margins now over $40 for the fourth consecutive week.
Shares of Brazil’s JBS SA rose 7% in early morning trading on Wednesday after the world’s largest meatpacker reported strong first-quarter results in spite of headwinds faced by its large U.S. beef business.
The Meat Institute has worked to educate member companies to improve age and identity verification and develop new programs and technology to detect identity fraud and more.
Batista brothers have been elected to JBS SA board of directors.
The margin spread between packer losses and feedyard profits expands as wholesale beef prices continue their retreat. Pork producer profits continue increasing.
Last week’s rally to new record prices pushed packer and feeder margins in opposite directions. Pork producer margins continue higher with prices now above year ago.
The economic environment of both the beef and pork industries has changed. Capacity utilization for both beef and pork has a significant impact on margins and the market impact goes beyond supply and demand.
Improving prices for live cattle and wholesale beef lifted margins for both feeders and packers. Pork producers also found improved margins but remain in the red.
Cattle feeding margins fell deeper into the red while packer losses doubled from the prior week. Pork producer margins have now printed red every week for the past year.
Cattle feeding margins declined nearly $100 per head last week with lower cash bids and rising costs. Pork producer margins remain mired in red ink.
The North American Meat Institute releases its 2023 Continuous Improvement Report with data submitted for this year’s report covering an estimated 90% of all meat sold in the United States.
Higher cattle prices and declining wholesale beef prices pushed packer margins further underwater last week. Pork producer margins inched into the black.
Tyson Foods is deploying autonomous refrigerated box trucks to bolster Tyson routes in Northwest Arkansas. Operating 18 hours a day, these driverless trucks will deliver products to distribution and storage facilities.
Environmental groups are pushing U.S. securities regulators to thwart JBS SA’s New York share listing over concerns about the world’s largest meatpacker’s impact on deforestation, climate change and other issues.
The spread between cattle feeding margins and beef packer margins has now reached $500 per head as packing losses increase. Pork producer margins are the highest of the year.
There’s a $400 spread between cattle feeding margins and packer margins – now in the cowboy’s favor. Cattle harvest is lower as packers reduce hours, a signal their margins are in the red.
Cattle feeding margins are rapidly declining as cash cattle prices retreat from spring highs
Cattle feeding margins improved $57 per head last week, due primarily to lower prices paid for incoming feeder cattle against last week’s marketings.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Cattle feeding margins jumped nearly $20 per head higher last week to average $216.
Both cattle feeding and packer margins improved last week, even as cash fed cattle prices dipped another $1 per cwt.
Profit margins for cattle feeders rose significantly in the past week.