MARKET NEWS HIGHLIGHTS
May 23, 2018
average retail price for choice beef in April was reported at 606.0
cents per pound, the highest price since last July and an increase
of 12.7 cents over April 2017. The all-fresh beef price for April
was quoted at 576.0 cents per pound, up 13.7 cents from the previous
month. The average pork retail price was pegged near even with
March at 375.2 cents per pound, while the average composite broiler
price increased by 3.3 cents from March to 190.0 cents per pound.
Foods, Inc. agreed to buy the poultry rendering and blending assets
of American Proteins, Inc. and AMPRO Products, Inc. The acquisition
is expected to enable Tyson Foods to recycle more animal products
for feed, pet food, and aquaculture. The acquisition includes four
rendering plants located in Georgia and Alabama and 13 blending
facilities throughout southeastern and mid western states. The
purchase price was reported to be $850 million.
USDA Crop Production report showed all hay stocks on farms at 15.7
million tons, 36% below last year and the third-lowest national
stocks figure on record. Hay stocks in the South Plains region fell
59% below last year.
conditions improved the third week of May, but are still well below
last year. As of May 20th,
46% of pastures were reported as good-excellent versus 43% the week
before and 62% a year ago. Pasture conditions are critical in
Kansas (31% poor-very poor), Colorado (32% poor-very poor), New
Mexico (67% poor-very poor), and Texas (31% poor-very poor).
Kansas Department of Health and Environment recently reported that
about 1.07 million acres of Flint Hills grasslands in 17 Kansas
counties were burned this spring. This is down over a million acres
compared to the 2.2 million acres burned in 2017, and is the fewest
number of Flint Hills acres exposed to prescribed burning since
the May USDA Crop Production Report, USDA estimated the Kansas
winter wheat crop at 270.1 million bushels with an average yield of
37.0 bushels per acre. The Colorado crop was estimated at 83.60
million bushels (38.0 bushel yield); the Oklahoma crop was reported
at 52.0 million bushels (26.0 bushel yield); and the Texas crop was
pegged at 43.2 million bushels (27.0 bushel yield). The total US
winter wheat crop was projected to fall 78 million bushels below
last year to 1.192 billion bushels. The average US yield fell from
50.2 to 48.1 bushels per acre.
announced on May 18th
that it has ended an anti-dumping and anti-subsidy investigation
into imported US sorghum. The investigation began in February
after the US imposed new tariffs on imports of Chinese solar panels.
China imported close to $1 billion in American sorghum last year.
Companies and Bartlett & Company announced an agreement under
which Bartlett Grain Co. and Bartlett Milling Co. will merge with
Salt Like City-based Savage. A specialist in supply chain services,
Savage has more than 4,000 employees in 250 locations across the US,
Canada, Mexico, and Saudi Arabia. In food and agriculture, Savage's
customers include leading fertilizer producers as well as companies
moving food-grade products to warehouses and distribution centers
across the US. Established in 1946, Savage Companies is privately
owned by members of the Savage family. The merged business will be
renamed Savage Enterprises, with the grain and milling businesses
continuing to operate under the Bartlett name. Not included in the
transaction is the Bartlett Cattle business. Bartlett said it is
exploring "strategic options" for its cattle business.
According to the USDA Weekly Crop Progress report, 81% of the corn crop had been planted as of May 20th, on par with the 5-year average. Soybeans were 56% planted versus the 5-year average of 44%. Spring wheat was 79% planted compared to the 5-year average of 80%. After a slow start in April, all of the crops got planted on time!