The average choice retail beef price in March was
reported at 874.5 cents per pound, up 11 cents from February and a new
record high, and 54 cents higher than March 2024. The average pork
retail value was pegged at 495.1 cents per pound, up 11 cents from the
previous month. The average retail broiler price for March increased
two cents from February to 245.2 cents per pound.
A Canadian company that operates three swine companies
in South Dakota and Iowa is facing insolvency amid allegations that it
ran a check-kiting scheme to keep the swine facilities afloat.
Alberta-based Sunterra Group filed for federal bankruptcy protection in
Canada last month. Court records show that the operator of Sunwold
Farms in Beresford, South Dakota, Lariagra Farms South in Parkston,
South Dakota, and Sunterra Farms Iowa in Rock Valley, Iowa, owes more
than $36 million to Compeer Financial based in Minnesota. Sunterra
Group is owned and operated by brothers Ray, Art, and Glen Price.
USDA reported a total of 11.638 million head of cattle
on feed as of April 1, 2025, a decrease of 188,000 head from the
previous year. The number of heifers on feed was quoted at 4.380
million head, down 180,000 head from 2024. The heifer inventory
represented 37.6% of the total number on feed, which is a lower ratio
than the past several quarters, which indicates the industry is
starting to shift towards expansion. However, historically the
heifer/steer ratio needs to be below 36% to indicate an expansion cycle
is truly in place.
A ribbon cutting ceremony was held on March 24th in
North Platte, Nebraska, for the new Sustainable Beef plant. The $400
million plant will process 1,500 head of cattle and employ 800 workers
when it is fully operational. The plant is scheduled to officially open
in late-May. America's Heartland Packing, the new AFG plant in Wright
City, Missouri, is in the final stages of construction, and is doing
some test slaughtering now. It will have the capacity to process 2,400
head per day, mostly non-fed cattle.
Grains
StoneX Group announced on April 14th that it has
entered into a definitive agreement to acquire RJ O'Brien for an equity
value of approximately $900 million. The purchase price will be paid in
a combination of cash and shares of StoneX common stock. StoneX will
also assume up to $143 million of RJO debt. The deal is expected to
close in the third quarter of this year. StoneX is a Fortune 100
company with operations in six continents and a market capitalization
of over $3.5 billion headquartered in New York City.
Landus Coop based in Des Moines, Iowa, announced the
resignation of CEO Matt Carstens and the appointment of Sam Caton as
the interim CEO. Landus was founded in 2016 when Ames-based Farmers
Cooperative Company merged with West Central Cooperative in Ralsten,
Iowa. Landus has about 7000 farmer members, and operates more than 50
grain facilities across Iowa and Minnesota. No reason was given for the
resignation of Carstens, but an e-mail that was sent out to farmer
members said the company was in good financial health.
Bunge has entered into definitive agreement to sell its
North America dry corn and corn masa milling business to Grain Craft,
one of the largest independent flour millers in the US. The transaction
includes Bunge facilities in Danville, Illinois; Worthington, Indiana;
Crete, Nebraska; Red Oak, Iowa; Muleshoe, Texas; Hutchinson, Kansas;
and Queretaro, Mexico.
ADM began shutting down domestic trading operations in
China and laying off staff as part of a global cost-cutting push. Job
cuts could impact 40 to 50 employees and were expected to conclude by
the end of September. Operating profit in ADM's large Ag Services and
Oilseeds division was down 40% last year.
China's state-run Cofco International is building its
biggest export terminal in the world in Brazil, and is starting to hire
sizable numbers of workers in Brazil. Positions are being offered in
sales, trading, operations, and administration.