World Perspectives
livestock

Livestock Industry Margins

Livestock industry margins were mostly steady/higher last week, with the notable exception of beef packer margins. Beef processing profits fell $20/head last week as fed cattle prices rose more than beef prices and a dip in slaughter weights reduced packers’ sales volume. Feedlot margins surged last week on a break in feeder cattle costs and reductions in the cost of gain. The pork industry saw largely steady margins with processer profits decreasing slightly on a weaker pork cutout and gains in hog purchase prices. Forward-looking hog producer margins were steady with the prior week for both farrow-to-finish and wean-to-finish operations but closeout profits for both types of operations fell due to weaker basis levels. ...

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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