Today’s WASDE showed USDA’s red meat and broiler production forecast up from last month reflecting a faster than expected recovery from slaughter plant shutdowns, backlogs and reconfigured operations. Slaughter was down the last week of May due to Memorial Day, but last week rebounded by more than 25 percent for both hogs and cattle. The WASDE revised last month’s total beef, pork and broilers production forecast for the year to be slightly above (0.05 percent) 2019. The 2021 forecast is 2.6 percent above the 2020 projected output.
Cattle slaughter is still 6.7 percent below last year’s pace year-to-date, but beef production is down less at 4.4 percent based on heavier weights. Total weekly cattle slaughter...
Key Takeaways: Export sales measure new commitments for future delivery, while export inspections provide a timelier gauge of grain that is physically moving through the export system. Sales and inspections often diverge from week to week because they measure different stages of the export pro...
What You Need to Know Today: The Brazilian real surged to start the week after a surprise election result in which right-wing Flavio Bolsonaro won the first round of the election. The swing in the U.S. dollar/Brazilian real (USD/BRL) exchange rate caused soybeans to jump sharply higher in earl...
Key Takeaways: Harvest pressure is fundamentally a timing issue: supply arrives much faster than demand can adjust, creating temporary weakness that can occur across crops and regions. The intensity of that pressure depends less on crop size alone than on how quickly grain moves into the syste...
