MARKET NEWS HIGHLIGHTS
March 1, 2018
the USDA Ag Outlook Forum, USDA projected production increases in
2018 in all three livestock species. Beef production was projected
at 27.7 billion pounds, up 5.9% from 2017. Pork production was
forecast to increase 5.1% to 26.9 billion pounds, and broiler
production is expected to expand 2.3% to 42.6 billion pounds.
average price for choice beef at retail in January was reported at
575.8 cents per pound, down 4.5 cents from December, but 9.6 cents
higher than January 2017. All fresh beef prices were quoted at
560.4 cents per pound, up 11 cents from the previous year. The
all-fresh pork retail price was at 375.0 cents per pound, up 18
cents from last January. The average composite broiler price was
set at 181.7 cents per pound, down 4.4 cents from a year ago.
stocks in cold storage at the end of January were pegged at 499.6
million pounds, down 7% from a year earlier. Pork stocks increased
8% year-to-year at 568.0 million pounds. Total chicken stocks were
reported at 876.5 million pounds, up 13% from a year ago.
Foods CEO Tom Hayes said the company continues to take initiatives
to transform itself into a "modern food company". Hayes
gave the message at the 2018 Consumer Analyst Group of New York
conference recently. He announced new initiatives, which include a
new brand called Green Street, in line with consumer demand for
ready-to-eat meals. Its first foray will be protein-rich
grab-and-go bowls that are 100% plant-based. Tyson also announced
an exclusive partnership with Tajin, which is one of Mexico's most
authentic and recognized spice brands. Tyson is also innovating to
keep its multiple billion-dollar brands contemporary and relevant.
Its Jimmy Dean brand is launching Egg'wiches in May, a new line of
frozen breakfast sandwiches without the bread. Its Hillshire Farm
brand is launching a line of premium carved, all-natural meats for
snacking, salads, and wraps in the lunch meat section this spring.
grain buyers are revamping operations to capture benefits of the new
tax law that favors cooperatives. Ethanol makers and family-owned
grain companies are setting up new agricultural cooperatives to
benefit from a provision in the law that give farmers larger tax
savings for selling crops to coops. For example, Green Plains,
Inc., the world's second-largest ethanol producer by capacity,
registered part of its business as a cooperative in January.
Scouler Co., also located in Omaha, is forming a cooperative in
response to the law. Commodity giants like ADM, Bunge, and Cargill
have pushed lawmakers to alter the law. Of course, that has not yet
has entered into a partnership with Precision BioSciences to develop
the next generation of low saturate, high oleic canola oil.
Together, the partners are using Precision's ARCUSŪ, genome-editing
technology to further reduce saturated fat in canola oil. The new
oil is intended for quick-service restaurants and food ingredient
Northey was confirmed by the US Senate On Tuesday, February 27th,
to be the next USDA undersecretary of agriculture for farm and
foreign agricultural services. The confirmation came after a
179-day hold on the nomination by Senator Ted Cruz, R-Texas, who
held up the Iowa secretary of agriculture's nomination as leverage
to push for reforms to the RFS. The vote came just ahead of a
scheduled meeting with President Trump at the White House with
Senator Cruz, Senators Grassley and Ernst of Iowa, and Senator
Toomey of Pennsylvania.
Corteva Agriscience is the name of the blended agriculture company spun off from the DowPont marriage. It will house the seed, pesticide, and digital service holdings of DuPont Crop Protection, DuPont Pioneer, and Dow AgroSciences. Corteva Agroscience will be a giant in the agrichemical and seed industry, worth more than $14 billion in combined revenues last year. Corteva will also house the farm management software company Granular, which DuPont acquired in August 2017. The company's corporate headquarters will be in Wilmington, Delaware, with "global business centers" in Indianapolis and Johnston, Iowa.