The Biden Administration is charging the meat packing industry with exploitation for elevated beef prices. Beef is certainly not the only industry with rising prices over the past year. In fact, beef inflation looks relatively modest next to the price spikes that have occurred in energy and transportation.
Moreover, the charge is that market power due to the four-firm concentration level in meat packing has been the conduit to being able to significantly raise prices. However, four-firm concentration in the sector has been high for decades. Contrasting industry concentration with annual beef inflation rates raises some questions. For example, why was beef price inflation lower in 1995 than in 1992 when concentration had increased by 1995...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
