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: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
