How much longer will cattle trend toward lighter slaughter weights?Today’s WASDE report lowered earlier estimates of total 2017 beef production based on lighter-weight cattle. This was despite a higher number being harvested and the trend toward even higher slaughter rates in the second half of the year.Current prices for fed cattle are strong and steady as a result of packers covering orders and the fewer cattle grading at choice, which has led to the former spending more for higher grade. That should all change, however, as record-high feedlot placements will lead to increased slaughter totals and bearish fed cattle prices later this summer. Slaughter is already running 5.7 percent ahead of last year with beef production up only 3.8 perce...
What You Need to Know Today: China’s state-run COFCO, in statements on Tuesday, implied that U.S. corn exports were currently uneconomical but hinted that the Middle Kingdom would import 3.5 MMT of the feed grain this year, with 1 MMT likely sourced from the U.S. Another drone attack has...
Beef packer margins declined to $190/head last week, down $32 from the prior week as the Choice cutout weakened while fed cattle prices remained steady. The cutout fell $2.56/cwt to $373/cwt while fed cattle prices held near $220/cwt, narrowing packer spreads after several weeks of improvement...
What You Need to Know Today: USDA reports are delayed until Tuesday due to the federal holiday on Monday. Over the weekend, President Trump announced a ceasefire between Russia and Ukraine. Russia warmly welcomed and confirmed this ceasefire by conducting more strikes against Ukraine. Specific...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.