· This week in the markets – Live cash cattle were down nearly $4 lower. Feeder cattle markets were anywhere from $3 to $10 lower. April live cattle closed down more than $10 for the week and the March feeder cattle contract was down more than $9. Choice Box Beef prices were $.60 higher this week. Cash barrow and gilt prices were unchanged for the week. The April lean hog futures contract closed $5.25 lower for the week. The pork cutout value was $1 higher this week.
· Cold Storage – Beef ending stocks were down 4.1 percent over a year ago. Total supplies of pork in cold storage was 625 million pounds, 11 percent higher than last year at this time. Ham stocks were only 1.7 percent above year-ago levels, while bellies were up 32 percent and loins were up 43 percent respectively.
· Restaurant Performance Index – Came in at 101.1 for January, higher than the December number. Both the current situation index and expectations index were higher than the previous month. The index of same-store sales was strong at 104.4, that’s a 3 percent increase from December.
· Increased volatility in the market – There are a lot of issues that have been popping up that are creating more volatility in the markets. Some of those include how the coronavirus outbreak is and will impact overall demand, increased competition on the global pork market from Brazil, and worries about the US allowing imports of Brazilian beef.
· Next week’s reports: US and Canada Cattle and Hogs and the latest Jobs report.
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