USDA released its 2020 Farm Income forecast yesterday. It has been a tough year for broilers. Receipts are expected to fall $6.7 billion (23.7 percent) in 2020, because of significantly lower prices.
Despite recovered processing margins so far for the second half of the year, margins to date are 16 percent below last year. Heavier birds have kept broiler meat production steady despite fewer birds slaughtered. For Q3 2020, broiler meat production is down 0.4 percent, based on a reduction in slaughter of 1.6 percent.
There is continued pressure on the sector with more COVID uncertainty hanging over what is now otherwise steady demand. And then there are feed costs, which are a direct cost for chicken companies’ cost of goods sold...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
