MARKET NEWS HIGHLIGHTSMay 5, 2022Livestock |
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Tyson
Foods has launched a free education program for all of its US team
members. Beginning this summer, Tyson employees will have the
ability to attain master's, undergraduate and associate degrees,
career certificates and literacy and technology fundamentals for
free. Tyson is partnering with social impact company Guild to
expand its existing Upward Academy program to include access to more
than 175 programs from 35 of the nations top universities and
learning providers. The 4-year, $60 million investment will cover
100% of all tuition, books, and fees for team members. The
initiative expands Upward Academy, an on-line adult education
program, that is currently offered at 46 Tyson locations.
Total
pork stocks in cold storage at the end of March were pegged at 487.2
million pounds, up 8% from last year. Pork belly stocks were
reported at 56.8 million pounds, an increase of 21.4 million pounds.
Total beef stocks were estimated at 536.9 million pounds, up 11% on
the year. Total chicken stocks increased 5% to 777.5 million
pounds.
Tom
Kadlec, president of ADM Investor Services, announced his retirement
from the company effective July 1st.
He will be replaced by John Stott, who is currently Group Vice
President, Finance, Corporate Treasurer, and CEO of Global
Technology. Stott started out with Continental Grain Company in
London, and then joined ADM in 1992 where he has held numerous
leadership positions in accounting and finance.
On the April USDA Cattle On Feed report, there were 12.105 million head reported to be on feed, a record-large number for this time period. Of those, 4.565 million head were heifers, which was a 75,000 head increase over last year. This meant that 37.7% of the cattle on feed were heifers. When the heifer percentage runs above 36%, historically it means the cattle industry is in liquidation. In addition, higher beef cow slaughter has pushed non-fed slaughter in the first quarter to its highest level in decades. Beef cow slaughter in the January-March quarter was 959,000 head, 17% higher than a year ago. The larger cow kill means this year's calf crop will be smaller again, as will the 2023 calf crop due to the large number of heifers on feed.
Grains
The
CME Group announced new daily trading limits that went into effect
this past Monday. Corn futures daily limits will expand to 50 cents
from 35 cents. Soybean daily limits will increase to $1.15 from
$.90. Both Chicago and KC wheat limits will decrease to 70 cents
from the current limit of 85 cents. These price limits will be in
effect until the first trading day of November.
Stats
Canada released their prospective acreage report on April 26th.
Total wheat acreage in Canada is projected to increase 1.67 million
acres to 25.031 million. Canola acreage is projected at 20.897
million acres, down 1.58 million acres from a year ago.
Bunge
and CoverCress, Inc. announced a commercial partnership to bring a
new renewable oilseed and animal feed crop to market. Through
sophisticated breeding and gene editing, CoverCress has converted
field pennycress, a winter annual weed, into the CoverCress crop
that fits into existing corn and soybean rotations. CCI claims
field pennycress is ideal as a lower carbon intensity feedstock to
help meet the growing demand for renewable fuels. Under the
commercial partnership, CCI will supply CoverCress grain produced
under contract to Bunge for processing.
Corn
planting progress has been slow to start the season. Through May
1st,
USDA reported that 14% of the corn crop was in the ground compared
to an average of 33%. Kansas was 35% planted which is close to
normal. Nebraska was at 28% versus the average of 34%. The other
major production states were way behind through - Iowa - 9%;
Illinois - 7%: Indiana - 6%; and Minnesota - 0% (not a typo!).
USDA said 8% of the soybeans had been planted as of May 1st compared to the 13% average. Kansas was 11% planted, which is ahead of normal. Nebraska was also ahead at 19% planted. The Delta states were either at or ahead of schedule. But, the major Corn Belt production states were very slow so far - Iowa - 4%; Illinois - 5%; Indiana - 3%; and Minnesota - 0%. Weather models indicate a more favorable window for planting into the third week of May.