May 21, 2018

May 21 Weekly Update

5/21 – Higher fuel prices are back. AAA says that retail gasoline in the U.S. is currently averaging $2.94 per gallon vs $2.35 a year ago. Diesel is $3.18 vs $2.50 last year. OPEC and Russia have successfully reduced the global crude oil supply surplus from 400M barrels to just

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May 14, 2018

May 14 Weekly Update

5/14 – In last week’s WASDE report, the USDA released its first look at the 2018/19 crop year for grains, and 2019 for proteins and dairy. Cattle, hog, broiler, cheese and butter prices for 2019 are all projected to be within 1% of 2018 levels. Turkey is forecast to jump

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May 10, 2018

May 7 Weekly Update

5/7 – Broiler production continues to struggle, but it’s not for lack of trying by producers. With four months of data in the bank for 2018, the number of “eggs set” into incubators (through 4/28) was up 2.6% from a year ago and 4.3% above the 3-yr average (2015/17). However,

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April 30, 2018

April 30 Weekly Update

4/30 – In April’s Cattle on Feed Report, the USDA said new placements onto feedlots in March were 8.3% below a year ago, but feedlots are still bulging with inventories at 7.4% above a year ago. Poor winter wheat grazing, due to drought in TX and OK, prompted higher than

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April 23, 2018

April 23 Weekly Update

4/23 – Nymex crude oil futures hit a 15-year low of $26.21 per barrel in Feb 2016. But it’s been a steady upward climb ever since , with crude closing at $68.38 on Friday. A strategic reduction in output by OPEC and Russia, and ongoing instability in Venezuela, has wiped

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April 16, 2018

April 16 Weekly Update

4/16 – Scratch Caesar Salad from the menu. The Center for Disease Control has reported that 35 people in 11 states have been stricken with E. coli poisoning from Mar 22-to-31. The CDC has identified Romaine lettuce as the source and Yuma, AZ as the growing region – but that’s

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April 9, 2018

April 9 Weekly Update

4/9 – It’s been a while since we’ve been concerned about feed prices. Corn, which was in the $3.40s in Jan, closed at $3.88/bu on Friday. Corn prices have been mostly sub-$4.00 since mid-2014. Both the USDA’s Perspective Plantings and the Quarterly Stocks reports were bullish for corn prices. The

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April 2, 2018

April 2 Weekly Update

4/2 – In its quarterly Hogs & Pigs Report, the USDA said that March 1st hog inventories were up 3.1% from a year ago. The number of hogs kept for breeding was up 1.7%. The average number of pigs saved per litter was record high at 10.58 for Dec-Feb. Looking

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March 19, 2018

March 19 Weekly Summary

3/19 - Coffee futures, which hit highs of $1.74/lb last fall, are currently near rock bottom at $1.17 per pound. But things could get interesting soon. A number of key forecasters have reduced their projections for this year’s Brazilian harvest. Brazil’s IBGE statistics institute cut its arabica forecast by 500,000

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February 28, 2018

February 26 Weekly Update

2/26 – In Friday’s Cattle on Feed Report, the USDA said new placements onto feedlots in Jan were 4.4% above a year ago. That follows 8.3% average monthly increases for Oct-Nov-Dec 2017. Total feedlot inventories on Feb 1 were 11.63M head, 7.9% higher than last year. Higher than expected placements

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