The beef sector experienced a week of record-breaking prices, and depressed packer margins for the week ending 1 August. Live cattle were a record $244.41 per hundredweight (cwt) for Choice steers, a $48 jump compared to the same week last year, while the cutout dropped $5.22 per pound and by more than $10 per pound over the past two weeks, to average $364.54 per cwt. With that, packer margins plummeted to an estimated loss of $316.28 per head according to Sterling Marketing, which was the largest weekly loss since 1988 when Sterling started keeping records. However, cattle feeders posted an estimated profit of $788 per head, with feeder steers weighing 750-800 pounds selling for a record $348.49 per cwt. That set a new high for breakeven p...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.