JBS leaves NCBA
A major meatpacker is leaving the National Cattlemen’s Beef Association. JBS, one of four packers representing 80% of U-S beef, has left the NCBA as the group takes a closer look at market consolidation. There are critiques that cattle prices are staying stagnant while packer profit margins are reaching records.
NCBA, along with other farm groups, met to talk livestock market concerns as lawmakers requested more investigations by the department of justice. JBS is no longer a member but company officials say they expect to remain involved. Iowa Senator Chuck Grassley tweeted out JBS leaving is good because NCBA should represent cattle producers, not big packers.
The US is starting a dispute panel on dairy trade with Canada. US Trade Representative Kathrine Tai says the US requested the panel under as required by the The United States-Mexico-Canada Agreement. The panel will review measures adopted by Canada that “undermine the ability of American dairy exports to sell a wide range of products to Canadian consumers.”
This is namely geared towards dairy tariff-rate quotas for Canadian processors. Agriculture Secretary Tom Vilsack says the action lets trading partners know they have to play by the rules.
Hog inspection system denied
A federal district court struck down a new hog inspection system. In the past year, the US Department of Agriculture started a new swine inspection system intended to allow faster harvest facility line speeds. This was criticised by worker advocacy groups who claimed it was dangerous to employees.
The National Pork Producers Council opposes the ruling, saying it will create a 2.5% loss in pork packing plant capacity nationwide that will reduce income by $%80 million for US hog farmers.
A look at the markets …
Grain is up a bit – market analyst Jamey Kohake has more:
“Here starting off today we had a lot of spillover on the red side of the ledger from yesterday’s selloff then again in the overnight into this morning but the last hour here at midmorning we rebounded and trended higher in corn and beans. The key longer term is still going to be acres are we going to be 96-97 or not, consequently we won’t need trendline yields to keep a comfortable carryout of 2 billion. But there’s still a lot of ifs. Over to beans, haven’t had a lot of big sales reported at all, the Argentina crop looks to get smaller as they finish off their harvest. But right now we’re kind of in a choppy more of a range bound trade. Disappointing trade in the live cattle we’ve had sharply higher boxes again yesterday looks like steady cash again, 118 to 120 and looks like we’re stuck in here going sideways doing nothing as packers are bought up making a record profit margin, over to hogs, we’re anywhere from 15-90 lower today lots of spread action bear spreads. Cutouts were on fire yesterday and look for those to remain very strong. Short term still bullish this market looking for the summer markets being propped up around 120 again.”