MARKET NEWS HIGHLIGHTS
January 27, 2021
average choice retail beef price during December was reported at
629.3 cents per pound, down 5 cents from November, but sill 29 cents
higher than last year. The all-fresh beef price for December was
quoted at 622.6 cents per pound, down 2.5 cents from the previous
month. The average retail pork price increased 2 cents to 412.0
cents per pound, which was 31 cents higher than December 2019.
Foods announced a $221.5 million settlement in an ongoing class
action lawsuit filed by Maplevale Farms in 2016 filed against
chicken broiler companies. Earlier, Pilgrim's Pride announced a $75
million settlement. The lawsuit alleged chicken companies cut
production in order to drive up broiler prices going back to 2008.
Prime Beef Packers plans to start operating a 100,000 square foot
facility in Pleasant Hope, Missouri, at the end of this month or by
early February. The plant's initial goal is to harvest 500 fed and
non-fed cattle per day. Missouri Prime's co-owners are Next Gen
Cattle Co. and Oregon cattle producer Stacy Davies. The plant
previously operated as a pork processing plant under the name Moon
Ridge Foods for less than 18 months until 2018. Nick Pasehkov,
formerly general manager at Tyson's Pasco, Washington, beef plant is
the plant's chief operating officer.
estimated the number of cattle on feed as of January 1st,
2021, at 11.965 million head, of which 4.565 million head were
heifers, or 38.2% of the total. Whenever the percentage of heifers
on feed is at 38% or higher, it is indicative of a lack of expansion
in the cowherd. Kansas has the most heifers on feed of any state at
1.160 million head, or 46% of the cattle on feed in Kansas.
announced the planned, temporary idling of two cattle processing
facilities for scheduled maintenance. On February 4th,
Cargill will idle its plant at Dodge City and on March 18th,
the company will idle its Schuyler plant. Both plants will be idle
for approximately one week to perform scheduled maintenance of the
refrigeration systems. Cargill employees will be paid during the
idle time as outlined in their collective labor agreement.
National Grain and Feed Association announced Michael J. Seyfort
will become its new president and chief executive officer. Seyfort
is scheduled to take over on March 1st,
succeeding Randy Gordon who will retire at the end of March.
Seyfort currently serves as director of government and industry
affairs for FMC Corp., the world's fifth-largest crop protection
company. Prior to that, Seyfort worked on the staff of former Sen.
Pat Roberts. Seyfort received his undergraduate degree in Ag
Economics at K-State, and earned a master of public administration
degree from George Washington University in Washington, DC.
Michigan, farmer Michael Stamp was sentenced to 8 years in prison
and ordered to pay $23 million in restitution as part of a plea
agreement reached with federal investigators on charges of bank
fraud and conspiracy to make false statements to the Federal Crop
Insurance Corp. According to the December 2017 indictment, the
losses alleged in the fraud total about $60.5 million.
estimated 2021 US winter wheat acreage at 31.991 million acres, an
increase of over 1.5 million acres from the previous year. Kansas
acreage was reported at 7.30 million acres versus 6.60 million in
2020 and 7.10 million in 2019. Texas acreage is projected at 4.80
million acres, down 100,000 from last year. Oklahoma wheat acreage
is pegged at 4.30 million acres, up 50,000 acres from last year.
final Kansas corn crop was reported by the USDA at 776.5 million
bushels with a 134 bushels per acre yield (133 last year). The
final Nebraska corn crop was quoted at 1.790 billion bushels with a
181 bushels per acre yield (182 last year). The Missouri corn crop
was 560.9 million bushels with a 171 bushels per acre yield (155
final Kansas soybean crop was pegged at 190.35 million bushels on a
40.5 bushels per acre yield (41.5 last year). The Nebraska bean
crop came in at 294.12 million bushels with a 57.0 bushel per acre
yield (58.5 last year). The Missouri soybean crop was 290.5 million
bushels with a 50.0 bushel per acre yield (46 last year). The
highest soybean yield in the country went to Illinois at 59 bushels