MARKET NEWS HIGHLIGHTS
July 29, 2020
choice retail beef prices for June were reported at 755.8 cents per
pound, 2.7 cents below the all-time high posted in May. All-fresh
beef prices came in at 738.2 cents per pound, nearly 34 cents higher
than May, and an all-time record high. The average retail pork
price for June was quoted at 424.5 cents per pound, up nearly 20
cents from May and also a new record all-time high. The average
composite broiler price was pegged at 207.9 per pound, up 3 cents
from the previous month.
owner of an award-winning organic dairy who pleaded guilty to
defrauding investigators of nearly $60 million was sentenced to 10
years in federal prison. Philip Riehl, an accountant and the
majority owner of Trickling Springs Creamery, ran a long-running
Ponzi scheme that prayed on hundreds of Amish and Mennonite
investors. He pleaded guilty in February to securities and wire
fraud and conspiracy. The creamery opened in 2001 and sold dairy
products up and down the East Coast.
Market Corp. filed a federal lawsuit against a large group of
poultry companies, alleging the companies conspired to manipulate
the price of broilers from 2008 to 2017. The lawsuit in the US
District Court of the Northern District of Illinois in Rockford
follows the June grand jury indictment in Denver of several
executives of various poultry companies. The next hearing in the
case is scheduled for August 8th.
Boston Market has asked for a jury trial.
pork supplies in cold storage at the end of June were reported at
464.4 million pounds, down 25% from last year. Total beef stocks
were estimated at 428.1 million pounds, 6% larger than last year.
Total chicken stocks increased 2% on the year to 855.0 million
USDA reported the total number of steers on feed as of July 1st at 7.033 million head, up 23,000 head compared to last year. Heifers on feed were estimated at 4.405 million head, down 65,000 head from last year. Heifers comprised 38.5% of all cattle on feed, a ratio that historically is a sign of being in a liquidation phase of the cattle cycle.
Plains, Inc. alleges ADM conducted a scheme to illegally depress the
ethanol cash spot market in a class-action lawsuit filed in the US
District Court for the District of Nebraska in Lincoln. ADM already
faces a similar lawsuit in Illinois from AOT Holding Ag. Green
Plains states ADM was selling 1 million gallons of ethanol on
average near the market closing window. ADM offset lower prices on
its own physical ethanol sales at the Argo, Illinois, terminal by
acquiring short-sided speculative derivative contracts at an
AG lost an appeal in the first case to go to trial linking its
Roundup weed killer to cancer, though the California court greatly
reduced the amount of damages to $20.4 million. The July 20th
decision by the California Court of Appeals comes in the case of
school grounds keeper Dewayne Johnson, who won a 2018 jury trial
with an initial award of $289.2 million.
CME fined The Andersons, Inc. $2 million for general offenses. The
CME found that in November and December 2017, The Andersons executed
a strategy to benefit their futures and options position by
registering 2,000 contracts of December 2017 Soft Red Winter Wheat
certificates. The Andersons then repurchased certificates at
reduced prices. The Andersons held over 60% of the short open
interest in the December SRW contract on the day immediately before
First Notice Day. The Andersons repurchased 1,330 of the 2,000
certificates (through the delivery process and the secondary
market), all at lower prices than the original registration. The
CME fined The Andersons, Inc. $2,000,000 for the above violations.
Several state agriculture departments have issued alerts regarding unsolicited packages containing seeds arriving in the mail from China. States reporting the deliveries include Arizona, Kansas, Louisiana, Ohio, Oklahoma, Utah, Virginia, and Washington. If you receive a package of this type, DO NOT plant the seeds. Contact your state ag department immediately! Unsolicited seeds could be invasive species, could introduce diseases to local plants, or could be harmful to livestock.