Sign in Subscribe
Commodity futures

Meat Industry Update: Market Trends and Developments

Strategic Insights

— 1 min read

The North American beef supply is considered safe by U.S. Agriculture Secretary Mike Johanns, and efforts are being made to restore full cattle trade with Canada. Meanwhile, in the pork industry, Premium Standard Farms Inc. is marketing its initial public offering to investors for $12 to $13 a share. Additionally, the Saskatchewan government has announced a C$37.3 million package to encourage the development of the meat processing sector in the province.

Key Takeaways:

  • The U.S. Agriculture Secretary believes the North American beef supply is safe, and efforts are underway to restore full cattle trade with Canada.
  • Premium Standard Farms Inc. is marketing its initial public offering to investors for $12 to $13 a share.
  • The Saskatchewan government is providing a C$37.3 million package to support the development of the meat processing sector in the province.
  • The U.S. House of Representatives has voted to delay implementation of a mandatory country-of-origin labeling law for meat.
  • Australia's Federal Court Justice Wilcox is considering a ban on imports of pork from countries with cases of Post Weaning Multi-Systemic Wasting Syndrome, or PMWS.
  • The South Korean government has imposed a 17-month ban on U.S. beef, which President George W. Bush plans to discuss with South Korean President Roh Moo-hyun.
  • Slowing demand for red meats and expectations of record-large U.S. pork production are expected to lead to lower cash hog prices by late 2005 and throughout 2006.
  • Structural changes within the meat processing and retail grocery industries are causing price volatility in the meat market.
  • Joy Philippi, a Nebraska pork producer and president elect of the National Pork Producers Council, is addressing key legislative and public policy issues affecting the U.S. swine industry.

Statistics:

  • 199,200 tons of beef were imported by Russia in the first four months of 2005, a decrease of 4.5% from the same period last year.
  • New Zealand's farm exports are expected to rise 20% over current levels by 2008.
  • The U.S. House of Representatives has delayed implementation of a mandatory country-of-origin labeling law for meat.
  • Fed cattle trading has begun in Kansas at mostly $86.00 per hundredweight.
  • Live cattle futures are slightly higher in very light pre-weekend action.

Sources:

  • Dow Jones Commodities News via Comtex
  • AP
  • Dow Jones Newswires
  • Nikkei
  • Nihon Keizai Shimbun
  • COMTEX
  • Meat & Livestock Australia Ltd.

Read more