A tight supply of cattle is a perpetual story. And as noted several weeks ago, tight supply is exacerbated in 2014 because of an especially tight supply of cattle in the “other heifers” category. Meanwhile, some of the shortfall in domestic supply has been buffered by increased flow of feeders from Mexico....More
The rate of monthly beef cow slaughter as a percentage of Jan. 1 beef cow inventories clearly increased beginning in earnest in 2006 and continued that way through 2011. Since that time, though, the rates have begun to reverse....More
This week’s Industry-At-A-Glance reflects Jan. 1 heifer inventory by respective category. Consideration of some of the specific inventory trends possesses some important implications.
• The annual inventory of beef replacement heifers has stayed relatively constant over time. That reality underscores the overwhelming contribution of beef cow slaughter (vs. a slowdown in heifer retention) when explaining the declining cow inventory....More
Beef exports are increasingly a significant component to derive value for the U.S. beef complex. Last year’s export value established a new record for the industry – exceeding $6 billion, which garnered an additional $626 million of revenue for U.S. beef producers. That value helped the beef industry maintain a solid footing with respect to net export value (exports less imports). In other words, international trade is providing a boost to the industry....More
The cattle feeding sector has faced many obstacles and challenges during the past several years, including tight supply, volatile feed prices and escalating capital requirements. Across all sorts of industries and businesses, size of operation carries certain economic advantages....More
USDA released its initial crop acreage forecast last week at the USDA Outlook Forum. Overall acreage is largely in line with last year’s planted acres. However, there is a slight rotation out of corn into soybeans.
Note that the chart indicates 2014 forecast corn coverage is down to 92 million acres – a decline of 3 million acres vs. last year. Meanwhile, soybean acres have increased by an equal amount to 79.5 million acres....More
The Chinese use two symbols to simultaneously represent the concept of risk or crisis: one is danger, the other is opportunity. That’s an appropriate characterization of the risk and reward potential inherent in today’s commodity markets....More
A survey of 2,000 of U.S. grocery shoppers finds that the consuming public is more aware, and exhibiting increased concern, regarding the origin, production method and safety of the food they buy....More
The Small Business Success Study's findings surrounds differences in attitude between new companies (in business 1-2 years) vs. those that are well established (40+ years). New company owners are far more optimistic about the national economy (64%) vs. established owners (only 45%)....More