Beef packer margins deteriorated to -$184/head last week, down $84 from the prior week as sharply higher fed cattle prices outpaced a modest rebound in the Choice cutout. The cutout firmed to $388/cwt, but fed cattle prices surged to nearly $255/cwt, continuing to compress packer spreads despite typical seasonal strength in wholesale beef values into early May. Feedlot placement margins were ...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.