MARKET NEWS HIGHLIGHTS
October 20, 2021
retail meat prices set all-time records for all three major animal
proteins. The average choice retail beef price was quoted at 787.1
cents per pound, up 23 cents from August. The all fresh beef price
was reported at 739.7 cents per pound, an increase of over 25 cents
from the previous month. The average pork retail price in September
was 6 cents higher than last month at 471.6 cents per pound, while
the average composite broiler price increased a penny month-to-month
at 216.1 cents per pound.
and offal credits have surged higher recently, and are now at $16.30
per cwt live equivalent. This value is just shy of the all-time
record set in September 2014. Hide prices have been stronger due to
tighter global supplies. Tallow prices have strengthened due to
increased biofuel usage. But, the main driver behind the increase
has been a sharp increase in variety meats due to much stronger
export demand. A year ago, hide and offal credits were reported at
$8.40 per cwt. live equivalent.
University economists released a new report on US cattle markets as requested by the House Agriculture Committee. Listed below are a few of the key findings:
The beef cattle industry is one of the most complicated markets in agriculture.
With respect to fed cattle pricing, research shows that AMA's (alternative marketing arrangements) do not create market power because they do not change underlying supply and demand fundamentals.
Most economic research confirms that the benefits to cattle producers due to economics of size in packing largely offset the costs associated with any market power exerted by packers. Research indicates that there is market power, but its effect has been small.
was general agreement that price discovery in fed cattle markets is
still robust despite the fact that less than 30% of the transactions
announced plans to build a $325 million soybean crush plant in
Montgomery County, Kansas. The plant will have an annual handling
capacity of about 38.5 million bushels with plans to begin
construction in 2022 and be completed in 2024. The Southern Kansas
and Oklahoma Railroad will provide rail services by connecting the
plant to a network of Class 1 carriers. Bartlett is part of the
Savage Company based in Salt Lake City, Utah, since 2018.
the October USDA Crop Production report, USDA estimated the Kansas
corn crop at 742.0 million bushels with a 140 average yield (up 2
bushels from September). The Nebraska corn crop was reported at
1.824 billion bushels with an average yield of 190 (up 2). The
Missouri corn crop was pegged at 554.3 million bushels, on an
average yield of 164 (down 5).
soybean production was estimated at 201.6 million bushels with an
average yield of 42 (up 2 bushels from September). The Nebraska
soybean crop was at 338.6 million bushels, with an average yield of
61 (up 2). The Missouri soybean crop was quoted at 282.5 million
bushels with an average yield of 50 (down 1 from September).
Kansas sorghum crop was estimated at 268.0 million bushels, up 30
million bushels from last year. Total acres were reported at 3.35
million, up 550,000 acres on the year. The average yield estimate
was 80 bpa versus 85 a year ago.
an independently owned software technology company, has acquired
Grain Bridge, LLC, a joint venture owned by Cargill and ADM.
Financial terms were not disclosed. Bushel provides digital systems
to more than 2,000 farm cooperatives, feed mills, and ethanol
plants. Bushel's platform now reaches 40% of grain origination in
the US. The deal is Bushel's second in recent months, after
acquiring ag management system developer Farm Logs in June.
Corn harvest was 52% completed as of October 17th compared to the 5-year average of 41%. Soybean harvest was 60% done versus the 5-year average of 55%. Kansas was 75% done on corn and 41% on soybeans. Nebraska was at 41% on corn and 76% on soybeans. Missouri was 74% complete on corn and 30% on soybeans.