Daily livestock report apr 15 2013
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Daily livestock report apr 15 2013 Daily livestock report apr 15 2013 Document Transcript

  • Sponsored by Vol. 12, No. 70 / April 15, 2013 USDA announced on Friday that as of Friday, April Voluntary Pork Reporting12, the USDA National Carlot Pork Report would be discon- Moving 5-Day Volume of Pork Loads since Jan 2, 2013tinued. In its place, USDA now will track two reports that rely 120.0on actual data that packers report to USDA twice a day. The two Loads of Cutsso-called mandatory pork reports will report pricing both as FOB 100.0 Loads of TrimmingsPlant and FOB Omaha. As we have noted in several previous is-sues, the change to the mandatory pork price reporting should 80.0provide better visibility of pricing in the wholesale pork market.Market participants have had three months to prepare for the 60.0eventual change although the decision by USDA to stop the volun-tary report still caught some in the market by surprise. The ex- 40.0pectation was that USDA probably would continue to report thevoluntary prices until the end of the month. The chart to the right 20.0shows the volume of loads in the voluntary report since January 2.It is obvious that once USDA decided to report the mandatory 0.0prices concurrently with the voluntary prices on April 1, the vol-ume of pork reported in the voluntary Carlot Pork Report fell offdramatically. On April 10 and April 11, there were no pork loadsreported in the voluntary report, which forced the USDA to pullthe plug. While some, including this writer, would have wanted $/CWT PORK CUTOUT: VOLUNTARY VS. MANDATORY REPORTSUSDA to continue publishing the two reports side by side for at 93.0least six months in order to have a more complete data series, that 91.0proved to be impractical in reality. The expectation coming into the implementation of the 89.0mandatory pork report was that the prices presented by the volun- 87.0tary report would be higher than prices in the mandatory reports.Given that the pork market in recent years had become increas- 85.0ingly opaque, some speculated that packers had an incentive to 83.0report only the highest prices in the voluntary Carlot Report. Thereality of the pork price reporting in the last three months has Mandatory 81.0shown that the opposite was true. The pork cutout as reported by 79.0the mandatory price report has been consistently above the porkcutout calculated using voluntary prices. The average spread in 77.0 Voluntarythe cutout values was 3.95 cents or 5%, quite a significant differ- 75.0ence. Indeed, given this wide difference between the two reports,most packers had an incentive to discontinue to report voluntary Jan-13 Feb-13 Mar-13 Apr-13prices and did so as soon as was possible, again making the pro-duction of a voluntary report by USDA no longer viable. As to the ing at various levels of the supply chain into alignment with thereasons for the big spread between the prices in the voluntary changes in the USDA pricing sheets.report and in the mandatory report we have a pretty good opinion On page 2 we have included pricing on a number of items,why. However, our stand is to limit as much as possible giving hams, loins, bellies, based on the new mandatory price reportingour opinion on trade matters, especially since both packers and system. As a result, for now, we are not comparing those numbersend users are currently involved in renegotiating their formula- to a year ago given the discrepancy in prices. We are still workingtions to account for the changes in pricing references. Those that on a way to correct for this issue but until we figure this out, therewe work with, already know our position on this matter. Suffice to will be an N/A in the summary table. See full details on pricessay that more work will be done in the coming weeks to bring pric- and production on page 2. The Daily Livestock Report is made possible with support from readers like you. If you enjoy this report, find if valuable and would like to sustain it going forward, consider becoming a contributor. Just go to www.DailyLivestockReport.com to contribute by credit card or send your check to The Daily Livestock Report, P.O. Box 2, Adel, IA 50003. Thank you for your support!The Daily Livestock Report is published by Steve Meyer & Len Steiner, Inc., Adel, IA and Merrimack, NH. To subscribe, support or unsubscribe visit www.dailylivestockreport.com. Copyright © 2013Steve Meyer and Len Steiner, Inc. All rights reserved.The Daily Livestock Report is not owned, controlled, endorsed or sold by CME Group Inc. or its affiliates and CME Group Inc. and its affiliates disclaim any and all responsibility for the informa oncontained herein. CME Group®, CME® and the Globe logo are trademarks of Chicago Mercan le Exchange, Inc.Disclaimer: The Daily Livestock Report is intended solely for informa on purposes and is not to be construed, under any circumstances, by implica on or otherwise, as an offer to sell or a solicita- on to buy or trade any commodi es or securi es whatsoever. Informa on is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied orpossible where projec ons of future condi ons are a empted. Futures trading is not suitable for all investors, and involves the risk of loss. Past results are no indica on of future performance.Futures are a leveraged investment, and because only a percentage of a contract’s value is require to trade, it is possible to lose more than the amount of money ini ally deposited for a futuresposi on. Therefore, traders should only use funds that they can afford to lose without affec ng their lifestyle. And only a por on of those funds should be devoted to any one trade because atrader cannot expect to profit on every trade.
  • Page 2 Sponsored by Vol. 12, No. 70 / April 15, 2013PRODUCTION & PRICE SUMMARY Week Ending 4/13/2013 Current Y/Y % Item Units Week Last Week Pct. Change Last Year Pct. Change YTD Change 13-Apr-13 6-Apr-13 14-Apr-12 Total Red Meat & Poultry mil lbs., cwe 1,694 1,644 3.07% 1,607 5.42% 24,444 0.6% FI Slaughter Thou. Head 606 593 2.19% 581 4.29% 8,843 -2.7% C FI Cow Slaughter ** Thou. Head 120 126 -4.79% 116 3.28% 1,598 -0.2% A Avg. Live Weight Lbs. 1304 1315 -0.84% 1283 1.64% 1,321 1.4% T Avg. Dressed Weight Lbs. 791 794 -0.38% 779 1.54% 797 1.4% T Beef Production Million Lbs. 478.5 469.5 1.92% 451.4 6.00% 6,995 -1.9% L Live Fed Steer Price $ per cwt 127.23 128.29 -0.83% 122.16 4.15% E Dressed Fed Steer Price $ per cwt 200.36 204.41 -1.98% 195.03 2.73% OKC Feeder Steer, 600-700 $ per cwt 155.45 152.29 2.07% 164.71 -5.62% & Choice Beef Cutout $ per cwt 190.60 191.29 -0.36% 177.79 7.21% Hide/Offal $ per cwt, live wt 14.44 14.23 1.48% 13.23 9.15% B Rib, Choice $ per cwt 275.99 281.91 -2.10% 261.15 5.68% E Round, Choice $ per cwt 161.44 162.86 -0.87% 153.54 5.15% E Chuck, Choice $ per cwt 159.99 161.38 -0.86% 143.73 11.31% F Trimmings, 50% $ per cwt 96.46 92.34 4.46% 52.80 82.69% Trimmings, 90% $ per cwt 217.80 218.70 -0.41% 220.99 -1.44% FI Slaughter Thou. Head 2,082 2,093 -0.53% 2,052 1.46% 31,833 -0.7% FI Sow Slaughter ** Thou. Head 57.2 58.0 -1.36% 55.9 2.35% 732 1.0% H Avg. Dressed Weight Lbs. 207.0 208.0 -0.48% 209.0 -0.96% 207 -0.7% O Pork Production Million Lbs. 431.9 434.3 -0.55% 428.6 0.77% 6,603 -1.3% G Iowa-S. Minn. Direct Wtd. Avg. 80.83 78.88 2.47% 79.93 1.13% S Natl. Base Carcass Price Wtd. Avg. 80.28 78.22 2.63% 80.89 -0.75% Natl. Net Carcass Price Wtd. Avg. 82.68 80.64 2.53% 83.31 -0.76% Pork Cutout 200 Lbs. 81.53 80.41 1.39% NA #VALUE! Hams $ per cwt 62.72 59.41 5.57% NA #VALUE! Loins $ per cwt 86.18 86.25 -0.08% NA #VALUE! Bellies $ per cwt 139.44 136.16 2.41% NA #VALUE! 72CL Pork Trim $ per cwt NQ 51.84 NA 47.32 #VALUE! C Young Chicken Slaughter * Million Head 153.2 149.7 2.36% 147.8 3.71% 2,120 1.3% H Avg. Weight (Live) Lbs. 5.83 5.64 3.37% 5.65 3.19% 5.82 1.6% I Chicken Production (RTC) Million Lbs. 679.0 641.7 5.81% 630.3 7.72% 9,377 4.3% C Eggs Set Million 199.4 200.3 -0.46% 199.3 0.02% 2,777 1.3% K Chicks Placed Million Head 165.2 163.7 0.95% 165.2 0.02% 2,289 0.6% E 12-City Broiler Price Composite 106.94 106.51 0.40% 85.41 25.21% N Georgia Dock Broiler Price 2.5-3 Lbs. 102.57 102.28 0.28% 92.01 11.48% Northeast Breast, B/S $/cwt 153.24 152.27 0.64% 136.35 12.39% Northeast Legs $/cwt 72.2 69.85 3.36% 71.51 0.96% T Young Turkey Slaughter * Million Head 4.220 3.993 5.68% 3.953 6.75% 58.813 -1.1% U Avg. Live Weight Lbs. 31.14 30.83 1.01% 30.7 1.43% 31.26 0.2% R Turkey Production (RTC) Million Lbs. 105.1 98.5 6.77% 97.1 8.30% 1,469 -0.9% K Eastern Region Hen Price 8-16 Lbs. 100.47 97.00 3.58% 107.25 -6.32% G Corn, Omaha $ per Bushel 6.81 6.59 3.34% 6.47 5.26% R DDGs, Minnesota $ per Ton 235.00 245.00 -4.08% 205.00 14.63% A Wheat, Kansas City $ per Bushel 7.26 6.99 3.86% 6.16 17.86% I Soybeans, S. Iowa $ per Bushel 14.61 14.24 2.60% 14.46 1.04% N Soybn Meal, 48% Decatur $ per Ton 411.50 407.10 1.08% 388.10 6.03%* Chicken & turkey slaughter & production are 1 week earlier than the date at the top of this sheet.** Cow and sow slaughter reflect levels from two weeks ago due to reporting lag. The Daily Livestock Report is made possible with support from readers like you. If you enjoy this report, find if valuable and would like to sustain it going forward, consider becoming a contributor. Just go to www.DailyLivestockReport.com to contribute by credit card or send your check to The Daily Livestock Report, P.O. Box 2, Adel, IA 50003. Thank you for your support!