MARKET NEWS HIGHLIGHTS
August 28, 2018
average retail choice beef price for July was reported at 614.7
cents per pound, unchanged from June, but nearly 13 cents higher
than last year. The all-fresh beef price in July was 577.2 cents
per pounds, up a nickel from June. The average retail pork price
was quoted at 392.7 cents per pound, an increase of 19.6 cents over
Animal Health has agreed to buy Bayer AG's veterinary medicine
business for $7.6 billion, making it the second-largest animal
health company. The deal would mean that half of Elanco's overall
business would be in the lucrative pet products market. The other
half would be generated by livestock related sales. Germany's Bayer
is divesting several of its businesses to lower debt after spending
$63 billion last year to acquire Monsanto. The companies expect to
close the deal by the middle of next year subject to approval by
beef stocks in cold storage at the end of July were reported at
455.1 million pounds, down 6% from a year ago. Total supplies of
pork were estimated at 601.8 million pounds, up 9% from last year.
Pork bellies in cold storage were increased by 14 million pounds.
Total chicken supplies in the freezer dropped 3% to 850.5 million
The US and Japan reached an agreement in principle on a new trade deal. In a report on August 24th, Nikkei, a Japanese news organization, reported that Japan agreed to grant the US the same level of tariffs on ag products that other counties have gotten through the Trans-Pacific Partnership, from which Trump withdrew, in exchange for an exemption from Trump's proposal to increase auto tariffs. Reports indicate the two countries will be signing it around the U.N. General Assembly meeting in New York in September. Japan is a major export customer of both US beef and pork.
Spader became president of Angus Media, an entity of the American
Angus Association, on August 12th.
Spader most recently served as executive director for the National
Center of Beef Excellence.
farm real estate value increased from 2018 according to the USDA's
National Ag Statistics Service (NASS). Farm real estate value
aveaged $1,960 per acre, up $110 per acre from last year. Dryland
cropland averaged $2,050 per acre (up $90), irrigated cropland
averaged $3,320 per acre (up $340), and pastureland averaged $1,390
per acre (up $70).
Ltd. announced it is relocating its global headquarters from White
Plains, New York, to the Saint Louis, Missouri, metropolitan area.
The move allows the company to leverage shared capabilities and
enhance collaboration. The transition is expected to be completed
by the end of the second quarter 2020.
announced it will idle a 92-million gallon ethanol plant in
Cloverdale, Indiana, following EPA's decision to grant 31 new
small-refinery waivers to the RFS for 2018. POET said it has already
cut production at half of its plants, mostly in Iowa and Ohio.
estimated the corn crop at 13.4 billion bushels on an average yield
of 163.3 bushels per acre and a soybean crop of 3.5 billion bushels
with an average yield of 46.1 bushels per acre at the conclusion of
their week-long crop tour on Friday, August 23rd.
These estimates are well below the USDA numbers from the August
crop report. The tour confirmed what the market already knew -
crops in the west are good; crops in the east are not. The
overwhelming consensus from participants on the tour was the very
late maturity of the soybean crop.
The Office of Management and Budget (OMB) showed the EPA how to account for biofuel gallons lost to small-refinery waivers, but the EPA ignored the OMB's suggestions according to interagency review documents. Also, the OMB provided a method for restoring 500 million gallons of blending obligations that were erroneously waived in 2016. The US Court of Appeals for the District of Columbia Circuit ordered the 2016 gallons to be accounted for, but the agency declined to do so. Since 2016, the EPA has waived 4.03 billion gallons of biofuels as a result of granting 85 small-refinery waivers.