What the Potential Government Shutdown May Mean for Agricultural Price Reporting 

A potential government shutdown is just days away, raising concerns among those who depend on critical data to make timely market assessments and business decisions. A shutdown will begin on October 1 at 12:01 a.m., the start of the federal fiscal year, if Congress does not pass a funding plan that President Biden signs into law.

The Senate is currently preparing its own bipartisan plan for a stopgap measure to keep offices funded after Saturday’s deadline. Failure to reach an agreement on a continuing resolution (CR) to keep the federal...

The Retail Rundown: Pork and Seafood Share the Spotlight Next Month

Pork and seafood will share the spotlight next month, as October is recognized as both National Pork Month and National Seafood Month. Retailers are expected to increase feature volume for the two proteins in the weeks ahead to promote spending this fall. 

October is reserved for National Pork Month to help move product when hog supplies are large. While a seasonal expansion in supplies typically takes place around this time of year, ongoing liquidation efforts may keep a lid on supplies this fall and winter.

Weekly hog slaughter levels...

Corn and Soybean Harvests Remain Ahead of 5-Year Avg

The corn harvest in the 18 major producing states made further progress last week and remains ahead of a year ago and the five-year average.

The same can be said about the soybean harvest. It is early in the harvest season and farmers may face weather-related delays that could slow their progress versus historic levels in the weeks ahead. 

USDA data released Monday showed corn harvest in the top 18 producing states as of Sunday at 15%, up from 9% the previous week and above 11%...

Construction Breaks Ground at JBS' First Cultured Protein Center in Brazil

Construction has broken ground at JBS' Biotech Innovation Center, the first and largest Research, Development, and Innovation Center for cultured protein and food biotechnology in Brazil. 

The center, which is expected to be inaugurated at the end of next year, will be located within the Sapiens Parque innovation park, in Florianópolis. It will employ a team of 25 postdocs in addition to administrative support staff.

Two of Brazil's leading bioengineering specialists, Dr. Luismar Marques Porto, president of the Cultured Meat Division and the JBS Biotech Innovation Center, and...

WTI Oil Prices Dip Below $90 a Barrel Following Fed Comments

West Texas Intermediate (WTI) crude futures slipped below $90 a barrel at midweek after the Federal Reserve signaled that one additional rate hike is possible this year.

In a widely anticipated move, the central bank maintained the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. Fed officials re-emphasized they are "strongly committed to returning inflation to its 2 percent objective."

The central bank has raised rates 11 times since March 2022. After peaking in June 2022 at 9.1%, U.S. inflation...

The Retail Rundown: Fall-ing into Seasonal Trends

It’s the end of an era…or at least, a season. Pumpkin everything has already been underway for a couple of weeks and the fall equinox officially arrives on Saturday, September 23^rd.

Grocers are increasingly highlighting autumn retail trends consistent with indoor oven cooking, resulting in shifting feature volume from grilling cuts to cooler-weather items like roasts.

Beef roasts have seen a notable uptick in feature volume since the beginning of the month, currently claiming 22% of total beef ads. Comparatively, the roast category accounted for 14% of beef ads...

Corn Harvest Slightly Outpacing Year-Ago and 5-Year Avg

Corn harvest in the 18 major producing states made further progress last week and is slightly outpacing a year ago and the five-year average.

The soybean harvest is one point ahead of the five-year average. However, it is early on in the harvest season and weather-related delays could slow farmers’ progress versus historic levels in the weeks ahead.

USDA data released Monday showed corn harvest in the top 18 producing states as of Sunday, September 17 at 9%, up from 5% the previous week and 7%...

Hormel Workers Reject Latest Offer, Contract Extension in Place Until October

Union workers at the Hormel Foods plant in Austin, Minnesota voted to reject a final offer from the company. Voting took place last week from September 13 and 14 at the plant and UFCW union hall in Austin. 

UFCW Local 663, which represents over 17,000 retail, meat packing and processing, food preparation and manufacturing, healthcare, and other workers in Minnesota, issued the following statement on Friday: 

"This week our coworkers voted overwhelmingly to reject Hormel's final offer to us. It's simply not good enough. We stand united, and...

Olymel Continues Consolidation Efforts, Announces Closure of Two Further Processing Plants

On Wednesday, Olymel announced the definitive closure of two of its further processing plants as part of the company's ongoing efforts to streamline its operations and ensure profitability across its facilities. 

Olymel is the leading producer, processor, and distributor of pork and poultry in Canada. It has production and processing facilities in Quebec, Ontario, Alberta, Saskatchewan, and New Brunswick. 

In its fresh pork sector, Olymel announced the closure of its boning and packaging plant in Princeville, Centre-du-Québec. The facility is slated to close on November...

Russia and China Planning to Construct Bordering Grain Terminal 

Over the four-day Eastern Economic Forum held in Vladivostok, Russia from September 10-13, Chinese and Russian officials signed multiple deals to enhance trade flows between the two countries. 

This includes the construction of a new grain terminal, called the Grain Terminal Nizhneleninskoye-Tongjiang, as reported by the South China Morning Post. The terminal will help export food produced in the Ural Mountains, Siberia, and Russia’s Far East to China. 

The new logistics hub will be located between Vladivostok, a major port city in Russia, and China’s northeastern province of...

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The Retail Rundown: Checking on Chicken; Latest Inflation Reading

For more than thirty years, the National Chicken Council (NCC) has partnered with major U.S. chicken producers to promote chicken sales this month—leading to September being crowned as National Chicken Month.   

In what was historically regarded as a slow period for poultry sales following the conclusion of summer grilling, increased in-store promotions and ad campaigns including chicken-centric recipes have helped extend the robust summer consumption season into September since the program's inception in 1989.

The number of chicken items found in advertisements this week based on Urner Barry's... 

The 2023 Corn Harvest Is Officially Underway

The week ending September 10^th marked the first week of measurable corn harvest in the United States for 2023.

The USDA reports that 5 percent of this year’s corn crop has been harvested so far, which is on par with a year ago at this time and one point ahead of the 5-year average. Texas reports 62 percent of its corn crop has been harvested, while North Carolina has harvested 49 percent. Seven of the 18 primary corn-producing states have yet to begin their harvest activities...

Union Workers at Austin Hormel Plant Scheduled to Vote on Final Offer from Company 

Union workers at the Hormel plant in Austin, Minnesota are scheduled to vote on a final offer from the company tomorrow and Thursday. The current contract with the company expired on Sunday, September 10.

In a statement issued Sunday, the UFCW Local 663 bargaining committee unanimously recommended a "no" vote on the final offer by Hormel. The union said that the company refused to give workers appropriate wages and pensions despite record profits.

Last month, Hormel Foods Corporation (NYSE: HRL), reported results for the third quarter...

Louisville CBP Agriculture Specialists Intercept Shipments with Prohibited Meat

U.S. Customs and Border Protection (CBP) Agriculture Specialists at the Louisville Port of Entry in Kentucky stopped 13 shipments containing Porky Pig’s Porky Pig’s relatives not declared in boxes from Hong Kong. 

From August 20 to August 28, Agriculture Specialists intercepted the shipments, which were heading to the same company in Bellerose, New York. Each shipment contained pork items, some contained pork and poultry items, and one contained pork and other prohibited food, according to the CBP.

A total of 1,104 pounds of pork, 298 pounds of poultry, and 88 pounds of prohibited foods were seized...

Live Cattle and Feeder Futures Extend Their Midweek Gains, Hit New Highs

The cattle complex extended its midweek gains on the Chicago Mercantile Exchange Thursday, sending feeder futures to fresh contract highs. 

October live cattle surged to a seven-week ceiling and finished 95 cents higher at $183.65 per cwt. October feeders were up $2.40 to $258.875 per cwt, beating out the previous contract high made early last week...

Corn futures were trading flat to fractionally higher at the closing bell for livestock futures and likely had minimal impact on the feeders' futures action...

Hot and Dry Weather Boosting Crop Development in Corn Belt

In the latest Crop Progress report, corn conditions were downgraded with 53 percent now in good to excellent condition, down three points from the previous week. Corn rated in poor to fair gained those points, now totaling 41 percent.

Corn in the dough stage of growth is nearly complete at 93 percent, one point ahead of the 5-year average rate. Corn dented is up to 67 percent, beating the average pace by 2 percentage points.

Corn reaching the mature stage is reported at 18 percent, double that of week-ago progress and outpacing the 5-year average rate by two points...

The Retail Rundown: Seasonal Shifts in September

From back-to-school shopping to the return of NFL season, September ushers in a flurry of buying occasions for the retail sector as seasonal shifts in consumer buying behaviors begin to take hold. 

Purchases for school lunches, snacks, and extracurricular activities lift sales at the deli counter and prepared and frozen foods sections of the grocery store. Last week, the lunchmeat category earned $95.9 million in total sales, up from $67.4 million the week prior. Roasted turkey continued to drive deli service sales and retailed at $10.64 discounted, up 79 cents from...

The Retail Rundown: 2023 Labor Day Feature Rundown

In the final push before Labor Day weekend, grocers are touting grilling items and party staples as consumers celebrate the last big summer occasion of the season.

Pork and seafood features each account for about 26% of total retail buying opportunities this week. Beef closely follows with 25.6% of feature volume while chicken comes in with 18% of ad space. Egg feature volume saw a noticeable slowdown to 0.7% this week, down from 3.2% the week prior and 4.1% two weeks back.

Ribs and bacon account for the bulk of pork's feature...

Minerva Foods' Acquisition of Marfrig's Plants to Expand its Capacity by About 44%

Minerva Food’s acquisition of most of Marfrig’s cattle slaughtering and deboning plants in South America will expand its capacity by about 44%, according to the company. Prior to the $1.54 billion deal, which was announced Monday, Minerva Foods could process 29,540 head of cattle per day. 

After Brazilian meatpacker Marfrig sold 16 of its slaughtering plants to its rival Minerva, Minerva's cattle slaughtering and deboning capacity swelled to 42,439 head per day. This will result in an excess of Brazilian real (BRL) 50 billion to the company's current...

Corn Growth Slightly Ahead Average Rate; Conditions Downgraded

In the latest Crop Progress report, corn in the dough stage was reported to have reached 88%, which is slightly ahead of past progress benchmarks. Corn dented was up to 51% stage completion, ahead of the 5-year average of 49%.

Corn mature was reported at 9%. This beats out the 5-year average of 8% and 2022 progress of 7%. 13 of the 18 primary corn-producing states reported some level of matured corn in the latest report.

Corn conditions were downgraded two points from the previous week, with 56% in...

Oil Futures Climb as Idalia Strengthens Into a Hurricane

Oil futures climbed on Monday as traders eyed potential disruptions to crude production in the Gulf Coast, which accounts for over 47% of total U.S. petroleum refining capacity, according to the U.S. Energy Information Administration (EIA). 

Tropical Storm Idalia strengthed into a hurricane Tuesday and is expected to make landfall in Florida by tomorrow. Idalia may produce tornadoes along the west central Florida coast today and could intensify to a Category 3 hurricane, according to the National Hurricane Center. Category 3 is considered a major hurricane with sustained winds of at...

USDA Makes $123 Million in Grants Available for Meat and Poultry Processors

The U.S. Department of Agriculture (USDA) Rural Development, partnering with the New Hampshire Community Loan Fund, has made $123 million in grants available through the Meat and Poultry Processing Expansion Program (MPPEP) Phase 2. 

The first round of the Meat and Poultry Processing Expansion Program began in November 2022, when the Biden-Harris Administration invested $73 million in 21 grant projects. 

MPPEP provides grants to help eligible processors expand their processing capacity. USDA Rural Development designed the MPPEP "to encourage competition and sustainable growth in... 

Record Breaking Heat Across Central U.S. Poses Risks to Livestock, Crops

The extreme heat impacting a large portion of the country this week has posed significant challenges for producers and their livestock. 

Highs into the upper 90s and low 100s are forecast for a broad region between the Midwest and central Gulf Coast today, according to the National Weather Service. Coupled with high humidity levels, heat indices could approach 120 degrees in some regions. While it's not unusual for August to experience heat, the current temperatures have shattered records. 

Over 110 million people across 20 states are currently under heat... 

Cold Storage: End July Combined Meat/Poultry -0.9% on Month, -4.3% on Year

USDA monthly cold storage data released Wednesday afternoon showed combined meat and poultry stocks held in the nation's freezer warehouses at the end of July at 0.9% below the previous month and 4.3% under a year ago.

The combined stocks were down 5.7% from the five-year average of 2.314 billion pounds. Chicken and turkey stocks were up from a year ago. Beef and turkey were higher than the month prior. 

POULTRY

Chicken stocks were reported at 847.6 million pounds, down 1.4% from the previous month and...

The Retail Rundown: Looking Towards Labor Day

Labor Day weekend is drawing near and grocers are busy securing orders for the final major retail buying occasion of the summer season. For this week's retail rundown, we'll take a look at wholesale price action and how it may influence holiday promotions at retail.

In the wholesale beef market, Urner Barry's Choice beef cutout has advanced by nearly 4% so far in August following a correction from seasonal all-time highs in mid-June and throughout July. The Choice cutout is currently down about 6.5% from its summer peak but is nearly 16%...

Corn Conditions Slightly Downgraded; Soybeans Hold Steady 

In the latest Crop Progress report, corn in the dough stage was reported to have reached 78%, which is ahead of past progress benchmarks. Corn dented was up to 35% stage completion, also ahead of the 5-year average of 33%.

For the first time this season, we have figures for corn mature, at 4%. This is on par with the 5-year average and 2022 progress. 10 of the 18 primary corn-producing states reported some level of matured corn in the latest report.

Corn conditions were downgraded one point from the...

Three Brazilian Meat Processing Plants Given Approval to Ship to Dominican Republic

Earlier this month, Brazil’s Minister of Agriculture and Livestock announced that the Dominican Republic has allowed imports of pork and beef produced in Brazil. 

Three Brazilian plants in the states of Acre, Santa Catarina, and Rio Grande do Sul were approved to ship to the Dominican Republic. Additional establishments in Rio Grande do Sul, Santa Catarina, and Paraná are also under consideration, announced Brazil's Ministry of Agriculture on August 9. 

"The Dominican Republic is a market with high demand, which has faced severe challenges with the record of ...

USDA Cattle: Aug 1 On Feed 2.3% Below Year Ago, July Placements -8.3%

USDA's monthly on-feed report released Friday showed the number of cattle in U.S. feedyards with a capacity of 1,000 or more head as of Aug. 1 at 2.3% below a year ago, slightly under the average of analysts' estimates.

Placements in July were reported at 91.7% of a year ago, about 2.8 percentage points below the average guess. The range of the guesses for placements was 3.5% to 9.6% under a year ago.  

Marketings for July were reported at 94.7% of the year-ago figure, very... 

Wheat Futures Rise Following Alleged Drone Attack on Moscow

Wheat futures on the Chicago Mercantile Exchange advanced by nearly 2% early Friday, boosted by mounting concerns over global supplies following an alleged drone attack on a building in central Moscow earlier in the day, according to media reports. 

December wheat reversed Thursday’s losses and narrowly surpassed $6.28 per bushel. This, however, was down sharply from its week-ago settlement price of $6.53 ¾ per bushel. Wheat prices have generally been on a steep downtrend since surging to $7.96 per bushel in late July, a five-month high... 

Leading Nicaraguan Beef Processors Remain Committed to Cattle Traceability, Responsible Ranching

Amidst recent international media attention, leading Nicaraguan beef processors have reiterated commitments to responsible ranching and traceability.

PATROL, a 2023 documentary, explores claims from communities in Nicaragua stemming from environmental conflict, including illegal cattle ranching on the rainforests of the Indio Maíz Biological Reserve.

Actor Leonardo DiCaprio promoted PATROL on Instagram, sparking conversations among many on the social media platform, questioning if cattle produced on illegally converted lands in Nicaragua could be unwittingly consumed by American households. More than 95% of the beef Nicaragua produces is exported primarily to...

Stock Futures Rebound Early Thursday Following Fed Minutes from July Meeting, Walmart Earnings 

On Wednesday, the Federal Reserve released minutes from its latest policy meeting that took place on July 25-26, contributing to a lower close in stock futures at midweek as traders weighed the potential for additional interest rate hikes. The next FOMC meeting is scheduled for September 19-20. 

"In their discussion of current economic conditions, participants noted that economic activity had been expanding at a moderate pace. Job gains had been robust in recent months, and the unemployment rate remained low. Inflation remained elevated," said the minutes...

Argentina's Secretary of Agriculture Denies Meat Export Ban Shortly After Announcement 

On Tuesday, Argentina announced a 15-day ban on beef exports in an effort to moderate prices amid surging inflation and a steep devaluation of the peso.

Argentina's central bank devalued its exchange rate by 18% on Monday after outsider candidate Javier Milei won a primary election on  August 13. The country's government is attempting to stop the sharp devaluation from impacting everyday prices for local consumers.

However, shortly after the ban was announced, the Secretary of Agriculture Juan José Bahillo denied the suspension, stating that negotiations are underway with the Ministry of Economy of Argentina...

The Retail Rundown: Egg-celerated Features Boost Spending

School is already in session for some students, giving consumers a sense of urgency to embark on one last vacation before August wraps. For the retail grocery sector, the lead-up to September will be used to promote back-to-school shopping along with grilling must-haves for Labor Day weekend. 

Last-minute getaways support foodservice spending as consumers flock to tourist destinations and dine out. For grocers, back-to-school shopping typically drives store traffic as families restock on breakfast, lunch, and snack items. Eggs, a quintessential breakfast staple, have seen...

Aug 1 Cattle On Feed Projected 1.6% Under Year-Ago

Market analysts and economists participating in the Urner Barry monthly cattle on feed survey predicted on average the Aug. 1 on-feed number at 1.6% below a year ago. On-feed estimates ranged from 98.0% to 99.1% of year-ago levels. 

USDA will release its monthly on-feed report at 3 pm Eastern time Friday.

Placements of young cattle in July were predicted on average at 5.5% below a year ago. The range of guesses was from 3.5% to 9.6% under a year ago.

Marketings, or those shipped out for slaughter...

Corn and Soybean Condition Ratings Improved in Latest Crop Progress Report

Corn conditions saw a modest improvement in the latest Crop Progress report. The USDA reported corn in good to excellent condition totaled 59%, up from 57% the previous week.

Corn in the silking stage was reported at 96%, on par with the 5-year average. Corn dough was up to 65%, two percentage points ahead of the 5-year average. Corn dented more than doubled progress from the previous week, at 18%. This matches the 5-year average and outpaces the year-ago progress of 15%.

Soybean conditions also saw improvements with 59% rated...

Ukraine's Navy Announces Temporary Corridors for Black Sea Vessels

Ukraine's Navy recently announced "temporary corridors" for merchant vessels destined for and departing from Ukrainian ports in the Black Sea.

“The specified routes will primarily be used for the possibility of leaving civilian ships that have been in the Ukrainian ports of Chornomorsk, Odesa, and Pivdennyi since the beginning of the full-scale invasion of Russia on February 24, 2022,” said Thursday's post.

The routes were previously proposed by Ukraine to the International Maritime Organization (IMO). 

Yesterday's announcement acknowledged military threats and mine danger from Russia along these routes. Moscow pulled out of the UN-backed...

Annual CPI Reported at 3.2% in July, Slightly Under Expectations

The U.S. Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) report for July, showing the index up 3.2% on the year. The latest data was slightly below expectations, which anticipated annual inflation to be 3.3% following a 3.0% rise in June. 

July's figure snapped a 12-month string of easing inflation but remains well below its June 2022 peak of 9.1%—the highest rate in four decades. 

On a monthly basis, inflation gained 0.2% in July, in line with expectations. The index for shelter was the largest contributor to the monthly all items increase, accounting for over 90% of the increase, according to the BLS...

Nearly 400 Workers to be Impacted by Tyson's Corydon Plant Closure

Earlier this week, Tyson Foods, Inc., one of the world’s largest food companies, announced that it is closing four of its U.S. chicken plants located in Arkansas, Indiana, and Missouri. The closures are expected to take place in early 2024. 

In a Worker Adjustment and Retraining Notification Act (WARN) notice filed with the Indiana Department of Workforce Development on Monday, Tyson said that the closure of its Corydon chicken processing plant will impact about 368 team members.

The workers will be permanently terminated beginning on or about...

The Retail Rundown: Most Protein Indices Are Below Last Year

A breakdown of this week's retail buying opportunities shows that seafood features make up about 30% of total protein ad volume this week, while beef claims about 25%. Pork follows with 18.2%, down about two points from the week prior. Chicken features account for 16.1% of total protein ads, compared to 17.5% last year. Boosted by back-to-school buying, egg feature volume more than doubled from the week prior to 7.2%.

For this week's retail rundown, we'll take a look at how the various protein indices are performing in...

Improved Rainfall Sends Soybean Futures to Multi-Week Lows

Widespread showers have largely benefitted corn and soybeans in the nation's key crop-producing regions, sending soybean futures on the Chicago Mercantile Exchange to multi-week lows on Monday.

November soybeans shed over 31 cents and fell to the lowest level since June 30, closing at $13.02 per bushel. 

In the latest USDA Crop Progress report, good to excellent ratings for soybeans were reported at 54%, up 2% from the week prior. Soybeans blooming moved up to 90%, above past progress benchmarks...

Diesel Tops $4 per Gallon but Remains Below Year Ago Levels

The national average for diesel has topped $4.00 per gallon and currently sits at $4.15, up from $3.97 a week ago but below $5.22 last year, according to AAA data. The highest recorded average diesel price was $5.82 in June 2022.

Reductions in oil production have contributed to the rise in diesel prices. On Thursday, OPEC member Saudi Arabia signaled that they will extend their voluntary cuts of one million barrels of oil a day through the end of September. 

An official source from the Ministry of Energy noted that this cut is in addition to the voluntary cut previously announced...

Livestock Futures Swept Up in Broad Losses Following Fitch Downgrade

Earlier this week, Fitch Ratings downgraded the United States’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to AA+ from AAA. This was the first time the U.S. received a downgrade from one of the three main rating agencies since 2011.

Fitch cited several drivers behind its decision, including “a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025.” The full report can be found here... 

The Retail Rundown: The August Outlook

August is here and the end to the dog days of summer is in sight—a much-needed pick me up for the protein industry following what is typically a sluggish period for sales post-July 4th.

Grocers are gearing up for Labor Day weekend, roughly four weeks out and the first major retail buying occasion since Independence Day. In the meantime, circulars are already showcasing back-to-school staples including breakfast items and sandwich ingredients as some students begin to return to the classrooms. 

According to the latest Circana data for the week...

New Jersey Governor Murphy Signs Legislation Banning Gestation Crates

On Wednesday, New Jersey Governor Phil Murphy signed legislation (A-1970/S-1298) requiring the State Board of Agriculture and the Department of Agriculture to "adopt rules and regulations concerning the confinement, care, and treatment of breeding pigs and calves raised for veal", according to a press release. 

The bill "prohibits confinement in an enclosure that impacts a breeding pig and calf’s ability to freely move in certain ways and properly groom itself and that limits visual contact with other calves." Specifically, the law requires a minimum of 24 square feet ...

NATO to Increase Reconnaissance in Black Sea Following Russian Attacks on Ukrainian Grain Storage

During the second meeting of the NATO-Ukraine Council on Wednesday, NATO and Ukraine condemned Russia’s withdrawal from the Black Sea grain deal last week, which raised fears of global food insecurity and higher food prices for countries that depend on Ukrainian exports.

Moscow is creating “deliberate attempts to stop Ukraine’s agricultural exports on which hundreds of millions of people worldwide depend,” read a statement issued by NATO yesterday. 

The U.N.-brokered grain deal, signed last summer, allowed the export of 32.9 metric tons of commodities...

The Retail Rundown: Seafood Features Swim to the Top

Closing out the last full week of July, seafood features make up 32.7% of total protein ad volume, marking the fourth consecutive week that they have claimed the top spot. Beef comes in second with 25.4% of retail buying opportunities. Pork takes third with 21%, followed by chicken at 16.6%. Eggs claim 2.6% of total ad space, down from 3.2% last week.

Fresh/frozen fillets account for the bulk of seafood feature volume, with swai fillets making up 24.6%. According to the latest IRI data, fresh swai averaged $4.82 discounted last week, while its frozen counterpart was featured at $5.43 discounted...

Crop Development Progressing Ahead of Past Benchmarks

Corn conditions were unchanged in the latest Crop Progress report, with 57% in good to excellent ratings. 30% remained in fair condition.

Corn in the silking stage advanced to 68%, a 21 percent jump from the previous week and three points ahead of the 5-year average. Corn in the dough stage was at 16%, more than doubling week-ago progress and two points ahead of the 5-year average.

Grain futures including corn were sharply higher Monday, boosted by concerns over global grain supplies following Russian attacks on Ukraine's ports on the...

BAADER Acquires Majority Stake in Food Processing Software Company

Food processing machinery giant BAADER has acquired a majority stake in EMYDEX Technology, a company involved in software solutions in the same sector.

Specifically, EMYDEX creates scalable Manufacturing Execution System (MES) software for the food processing sector.

“Combining the strengths of both companies will mean enhanced digital capabilities for BAADER and accelerated growth and market reach for EMYDEX,” BAADER said in a press release.

Petra Baader, CEO of BAADER Global SE, expressed her delight at the successful acquisition, stating, "This significant step promises to enhance our portfolio offerings...

U.S. Beef Herd Declines for Fifth Straight Year

The semiannual USDA Cattle Inventory report, released Friday afternoon, indicated that all cattle and calves in the United States as of July 1 totaled 95.9 million head, down 2.7% from a year ago.

The average pre-report estimate in the Urner Barry survey was expecting a 2.3% decline to 96.3 million head.

The 2023 calf crop was estimated at a record low of 33.8 million head, down 2% from 2022. Total cows and heifers that have calved were reported at 38.8 million head, down 2% from 2022 and nearly on target with analysts' expectations... 

Live Cattle Futures Make Fresh Highs Ahead of Key USDA Data

Live cattle futures visited uncharted waters once more on Thursday, hitting fresh highs ahead of key USDA data due out this afternoon. The August contract topped at $182.975 per cwt, $1.80 per cwt above its previous record high achieved last week. 

Ultimately, cattle futures formed outside bearish reversals and closed lower across the board, pressured by profit-taking and overbought signals. Feeder cattle futures also visited higher territory yesterday before finishing weaker, with gains capped by the relentless rise in corn prices amid rising tension between Russia...

Latest Treasury Sanctions Take Aim at Russia's Revenue Sources, Including Mining Sector

Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced further sanctions to inhibit Russia's supplies and revenue-generating sources that aid in its war efforts against Ukraine.

The designations made today by OFAC and the Department of State are part of the commitments that G7 Leaders made in February and May of this year.

The latest sanctions seek to restrict Russia’s access to products that support its military and war efforts, reduce Russia’s revenue from the metals and mining sector, undermine its future energy capabilities...

Russia's Warning to Black Sea Bound Vessels Ignites Rally in Wheat Futures

Wheat futures on the Chicago Mercantile Exchange climbed to multi-week highs Wednesday after Russia's Defense Ministry announced that any vessel bound for Ukranine's Black Sea ports will be viewed as potential carriers of military cargo, starting tomorrow. 

"From 00:00 am Moscow time on 20 July 2023 (2100 GMT), all vessels on the Black Sea sailing to Ukrainian ports will be regarded as potential carriers of military cargo," according to a Telegram post released by the defense ministry. "The flag states of these vessels will...

EU Denounces Russia's Attacks on Odesa and Ukraine's Grain Storage

Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy, denounced Russia's attacks on  Odesa, which have resulted in the large-scale destruction of Ukraine's grain storage. 

In press remarks made today, Borrell explained: "for the third night, Russia bombs and destroys all of the port infrastructure in Odesa [and other coastal cities] and the storages of grain – more than 60,000 tons of grain has been burned."

"So not only do they withdraw from the grain agreement, in order to [halt the] export the grain from...

Restaurant Sales Hold Steady in June, Job Growth Slows

The National Restaurant Association reported sales at eating and drinking places reached $88.9 million on a seasonally adjusted basis in June, per preliminary data from the U.S. Census Bureau. This total is on par with the month prior.

The Association said the “plateauing” of restaurant sales mimicked the entire retail landscape as spending in non-restaurant retail sectors jumped by 0.2%. The Wall Street Journal noted that overall retail spending indicates that consumers are keeping up with inflation but have yet to outpace it...

Russian Attacks on Odesa Target Grain Deal, Says Zelenskyy

Following a second night of Russian attacks on Odesa, a city on the Black Sea in Ukraine, Ukrainian President Volodymyr Zelenskyy wrote that Moscow is deliberately taking aim at the Black Sea Grain Initiative after the deal's collapse on Monday.

“Russian terrorists absolutely deliberately targeted the infrastructure of the grain agreement, and every Russian missile is a blow not only to Ukraine, but also to everyone in the world who seeks a normal and safe life,” wrote Zelenskyy on Wednesday. 

“Deputy Prime Minister Kubrakov and Minister Klymenko informed about the consequences of the strikes. There were also reports by Chief of Staff Zaluzhnyi and Air Force Commander Oleschuk. He instructed Voyskov to strengthen the protection of people and port infrastructure... 

The Retail Rundown: Battle of the Burgers

A crowd favorite with endless topping combinations, summertime grilling often feels incomplete without burgers. From traditional beef patties to plant-based alternatives, consumers of all tastes and budgets can find plentiful options at the grocery store. For this week's rundown, we'll take a look at how the various retail burger options stacked up against one another. 

Circana data showed that 78-84% lean ground beef averaged $4.59 discounted in the week ending July 9, up 25 cents from the week prior and above $4.40 last year. As a whole, ground beef...

Crop Condition Ratings Increase; Futures Choppy Following Grain Deal Expiration 

In the latest Crop Progress report, the USDA shows corn conditions were modestly altered to reflect a combined 13% in poor to very poor condition, compared to 14% the previous week. 30% of corn is rated fair, while 57% ranges good to excellent, up 2 points from a week ago.

Corn in the silking stage was up to 47% complete, compared to the 5-year average of 43%.

This week's report also showed preliminary figures for corn dough—which is the stage of growth when about half the kernels are...

U.N. Secretary-General Addresses Black Sea Grain Deal Termination

United Nations Secretary-General António Guterres has addressed the Black Sea Grain Initiative, which was terminated on Monday after Russia withdrew from the deal. 

Ships traveling in the northwestern part of the Black Sea are no longer guaranteed safety from Russian forces, raising concerns over the export capabilities of grain and other commodities from Ukraine’s three key ports. 

The grain deal, which was discontinued hours before its renewal deadline, has ensured the safe passage of over 32 million metric tons of food commodities from Ukrainian ports to countries at high...

Proposition 12 Distributor Guidance Document Released by CDFA

The California Department of Food and Agriculture’s (CDFA) Animal Care Program released a new guidance document on its website detailing the on-site inspection requirements for a distributor obtaining a third-party certification according to Proposition 12's regulations. 

California's Proposition 12, which began as a ballot initiative in 2018, went into effect on July 1, 2023. The law requires veal calves, breeding pigs and egg-laying hens to be housed in confinement systems that comply with specific minimum standards for freedom of movement, cage-free design, and minimum floor space. Any...

Producer Inflation Up Modestly in June; Unemployment Claims Decline

Today, the U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI), which measures the change in the selling prices received by domestic producers for their output, increased by 0.1% month-over-month in June. This was below trade expectations for a 0.2% gain. 

On an unadjusted basis, the index for final demand also advanced by 0.1% annually. This was the lowest level since August 2020. Economists were expecting a 0.4% year-over-year increase...

U.N. Secretary-General Sends Letter to Russia Ahead of Grain Deal Expiration

Ahead of the Black Sea grain deal’s looming expiration date on July 17, the United Nations continues in its efforts to secure Russia's agreement. 

Earlier this week, U.N. Secretary-General António Guterres sent a letter to Russian President Vladimir Putin detailing a proposal to revive the crucial grain deal, which was launched in Istanbul by the Russian Federation, Türkiye, Ukraine, and the United Nations last July. 

The deal is aimed at preventing global hunger and securing the safety of merchant ships that deliver grain and other...

Grain Futures Fall Following Latest WASDE Report

In the latest World Agricultural Supply and Demand Estimates (WASDE) report, the USDA outlook for 2023/24 U.S. corn calls for fractionally larger supplies and ending stocks.

Production for 2023/24 is forecast 55 million bushels higher as greater planted and harvested area from last month's annual Acreage report is partially offset by a 4.0 bushel reduction in yield to 177.5 bushels per acre.

Foreign corn production is projected fractionally higher with increases for Canada and Ukraine, which are partly offset by a reduction for the EU...

Melodea Develops New Barrier Product, Improves Recyclability of Food Packaging

Melodea, a company focused on creating sustainable barrier coatings for packaging, unveiled its MelOx NGen product, which was created to focus on improving the recyclability of plastic food packaging.

The company touted its eco-profile but the barrier, but Melodea said its barrier has “proven superior in its key role of maintaining food freshness and substantially reducing plastic waste.”

MelOx NGen is a water-based, plant-sourced coating designed to line the inside surface of numerous forms of plastic food packaging such as...

In First for the EU, The Netherlands Clears Runway for Cultivated Meat Taste Tests

The Netherlands has created a ‘code of practice’ that will allow for taste testing of cultivated meat products.

Mosa Meat, a cultivated meat company, announced on July 5 that cell-cultivated meat and seafood can be tested under specific conditions in The Netherlands thanks to a collaboration with the Dutch government, cultivated meat producers and sector representative HollandBIO.

This marks a key step towards commercialization in the European Union as the deal marks the first time a country in the EU allowed...

The Retail Rundown: How Did This Year's July 4th Protein Sales Perform? 

This year's July 4th celebration boosted protein sales across the board as consumers commemorated the final holiday of the summer with cookouts and gatherings. For this week's rundown, we'll take a look at how the various proteins performed at retail in the lead-up to Independence Day.  

The latest Circana data indicated that total beef sales volume swelled to $214.9 million during the week ended July 2, accelerated by late-minute buying for the holiday. This was up 73.3% from the week prior and 27.8% more the same week...

CPI Eased to 3.0% in June, Slightly Below Expectations

The U.S. Bureau of Labor Statistics (BLS) recently released the Consumer Price Index report for June, showing the index last month up 3.0% on the year. This was the smallest annual increase since March 2021 and was down sharply from the June 2022 peak of 9.1%. 

The latest data was slightly below expectations, which looked for inflation to decline from 4% in May to 3.1% in June. Inflation has eased for 12 straight months but remains above the Fed's target rate of 2%, leading some traders to anticipate...

Corn Silking Stage at 22%; Conditions Raised in Latest Crop Progress Report

Corn silking is up to 22% complete in the latest Crop Progress report, nearly tripling its progress from the previous week. This figure is one percentage point above the 5-year average benchmark.

The condition of this year's corn crop showed improvements over the previous week following additional widespread rainfall and cooler temperatures. A combined 55% is now rated in good to excellent condition, up from 51% the week prior. 31% is rated fair, while a combined 14% is in the poor to very poor category...

The Retail Rundown: Navigating the Summer Doldrums

With July 4th behind us, the summer doldrums are beginning to settle in and major retail buying opportunities remain scarce until Labor Day. During this period, grocers will attempt to encourage protein sales with attractive promotions as summer grilling and other activities remain in play. 

Beef saw robust protein feature volume throughout June and remains at the forefront of ad space with 27.3% of retail buying opportunities this week. Steaks currently take up about 65.4% of beef's feature volume, followed by ground beef with 18.2%. London Broil and roasts follow, each with about... 

Corn Conditions Only Modestly Improved; Soybeans Downgraded Slightly 

In the latest Crop Progress report, the USDA showed that corn in the silking stage doubled from the previous week, currently at 8%. The 5-year average rate is 9% and year ago progress stood at 7% in the current week. 13 of the 18 primary corn-producing states reported some degree of silking progress, as Colorado, Michigan, Ohio, Pennsylvania, and Wisconsin have yet to report silking figures.

Following rainfall over the weekend, corn conditions were only modestly adjusted in the latest week, with 34% rated fair and 43% good, up from 42% the week prior. 8% was rated excellent...

CDFA Releases Updated July 1 Proposition 12 Q&A

The California Department of Food and Agriculture’s (CDFA) Animal Care Program released an updated Q&A for Proposition 12, which started as a ballot initiative first approved by the state's voters in 2018. Prop 12 mandates minimum housing requirements for veal calves, breeding pigs, and egg-laying hens and prohibits a producer from selling products in California that came from a covered animal confined in a cruel manner. 

In mid-June, the Superior Court for the County of Sacramento signed an order that provided an extension for the continued sale of non-compliant whole pork meat in California that was already in the supply...

Blue Apron to be Profitable by Q2 2024 Following Asset-Light Model Shift

Meal kit provider Blue Apron provided a business update after the company closed a deal to transfer its operational infrastructure, which includes fulfillment centers, equipment, know-how and related personnel, to FreshRealm.

Blue Apron said it expects to achieve a profitable adjusted EBITDA mark in the second quarter of 2023 following the closing of the deal and streamlining efforts that the Company previously identified and will continue to implement in the third quarter of 2023.

Linda Findley, Blue Apron’s President and Chief Executive Officer, commented...

CDFA Hosts Pork Producer Webinar in Part Three of Prop 12 Series

In part three of the California Department of Food and Agriculture’s (CDFA) Animal Care Program Proposition 12 webinar series, the CDFA explained requirements for producers keeping or housing breeding pigs. 

Last week, the judge in the Superior Court of California for Sacramento County amended a previous order and extended the enforcement date until December 31, 2023, for “noncompliant” whole pork meat in inventory as of July 1, 2023, the North American Meat Institute (NAMI) explained.

Meat from noncompliant hogs slaughtered before July 1 can be sold in California...

The Retail Rundown: Which Proteins Dominate Holiday Features?

Leading up to the Fourth of July holiday, seafood and pork feature volume dominate retail buying opportunities. Seafood features account for 28.5% of total protein features while pork comes in with 26.7%. Beef falls to third with 25.3%, followed by chicken with 17.1%.

According to the National Retail Federation's annual Independence Day survey, 87% of consumers plan to celebrate the Fourth of July this year and spend an average of $93.34 on food items. Total spending is expected to reach a record $9.5 billion, up from $7.7 billion in 2022. Of those celebrating, 65%...

Corn Crop Progressing to Growth Stages; Conditions Fall Again

In the latest Crop Progress report, corn throughout the 18 primary production states has completed the emergence phase and is now into the silking stage of growth. Corn silking is at 4% for the week ending June 25, on par with the 5-year average.

The condition of the 2023 corn crop declined for a third straight week with a combined 50% in good to excellent condition, down 5 points from the week prior. 35% is in fair condition. A combined 15% is considered poor to very poor, versus 12% the...

Sysco-owned FreshPoint Acquires BIX Produce

Sysco’s specialty produce company FreshPoint has acquired fellow produce firm BIX Produce.

BIX serves as a produce specialty and fresh-cut distributor based in Minnesota. The company was founded in 1930 and boasts a broad range of restaurant and other foodservice customers in Minnesota, Wisconsin, the Dakotas, Illinois and Iowa.

FreshPoint will retain all BIX Produce colleagues and the current management team will remain in place.

Sysco noted that the acquisition provides a strategic opportunity for FreshPoint to:

- Expand its geographic footprint in an area of the country where it does not currently...

Grain Markets Rebound from Weather-Related Sell-Off Late Last Week

The grain markets have whipsawed in recent days as traders monitor weather conditions in the Midwest and await the upcoming USDA acreage report. The annual report from the government indicates acreage by planted and/or harvested areas by state for various crops including corn, soybeans, and wheat.

Forecasts for much-needed rain in the Midwest contributed to a sell-off in corn and soybean futures late last week, with December corn plummeting by over 32 cents on Friday after climbing to a multi-month top...

Hog Report Expected to Show 0.7% Decrease in Total Herd vs Year Prior

The USDA’s quarterly hogs and pigs report, scheduled for release Thursday afternoon, is expected to show a decrease in the U.S. swine herd versus June 2022. 

Analysts on average predict the all hogs and pigs number as of June 1 to be down 0.7% from a year ago.

The average of the estimates for all hogs and pigs would project 72.016 million head, compared with 72.524 million a year ago.

The survey showed on average the number of females kept for breeding at 0.7% below a year ago...

New Jersey Bill Banning Gestation Crates Passes State Senate

New Jersey bill A1970 Acs (ACS), sponsored by Senator Vin Gopal (D-11) and Assemblyman Raj Mukherj (D-33), passed the state Senate this week. It now heads to New Jersey Governor Murphy for his signature, who has 45 days from June 20, 2023 to act. 

Similar to California's Proposition 12, the bill sets animal-welfare standards for meat sold within the state. Specifically, it establishes criminal offenses and civil penalties concerning the inhumane confinement of breeding pigs and calves raised for veal. It requires 24 square feet of usable floor space per breeding pig and 43 square feet of usable floor space per calf. The animals must be able to fully extend their limbs and turn around freely....

Restaurant Sales Continue to Move Higher in May, QSR Traffic Jumps

The National Restaurant Association shared that the total sales at eating and drinking places reached $88 billion on a seasonally adjusted basis in May, per U.S. Census Bureau data.

The total was up 0.4% from April’s downward-revised volume of $87.7 billion but sits below January’s high of $89.3 billion.

“While the pace of sales growth slowed in recent months, restaurants were still top of mind for many consumers, the National Restaurant Association’s chief economist Bruce Grindy. “Consumer spending in...

American Consumers Can Now Eat Cell-Cultivated Chicken Following Historic USDA Approval

GOOD Meat and UPSIDE Foods will be able to sell their cultivated chicken products to the American public after obtaining a Grant of Inspection (GOI) from the U.S. Department of Agriculture (USDA), the final step of a pre-market regulatory review process.

"I'm thrilled to share that cultivated meat will now be available for consumers in the U.S.," said Dr. Uma Valeti, CEO and Founder of UPSIDE Foods. "This approval will fundamentally change how meat makes it to our table. It's a giant step forward towards a more...

UN Chief Urges Continuation of Grain Deal as New Harvest Begins

On Tuesday, United Nations (UN) chief António Guterres expressed disappointment by the slowed pace of inspections under the Black Sea Grain Initiative, the UN-brokered deal which allows for the exports of crucial commodities including grain from Ukraine amid the ongoing Russia-Ukraine war. 

The agreement, which is managed from Istanbul by a Joint Coordination Centre (JCC), is set to expire in mid-July unless all parties involved agree to a renewal. 

In a statement, Guterres said that food exports from the Black Sea have dropped off significantly from a peak of 4.2 million metric...

Corn Emergence Nearly Complete; Conditions Further Deteriorate

Corn emergence was up to 96% complete in the latest Crop Progress report, slightly above the 5-year average rate.

The condition ratings on the 2023 corn crop were downgraded again in the latest week, with a combined 55% now considered to be in good to excellent condition, down from 61% the week prior. 33% is rated fair, 9% poor, and 3% very poor.

Next week, the USDA should provide initial progress figures for corn silking, the next key stage of growth evaluated to determine overall progression.

Corn futures surged following the latest...

The Retail Rundown: Bring "Fourth" the Deals

Retailers are bringing "fourth" the deals for shoppers this week and next ahead of Independence Day, or the third leg of summer grilling occasions (the first two being Memorial Day and Father’s Day). 

The Fourth of July is the last major buying occasion of the summer until Labor Day, meaning grocers are actively promoting protein sales before we enter the dog days of summer. While the weather will influence sales for the upcoming holiday, retailers are also considering that this year’s holiday falls on Tuesday. This could potentially affect consumers' plans for cookouts...

Pre-Report Estimates for May Cold Storage Show Total Stocks 1.7% Below Year Ago

USDA will release its monthly cold storage report at 3 p.m. Eastern time Friday. Bob Brown, a private analyst from Edmond, Oklahoma, provided his insight on what the upcoming report might show.

Frozen total meat and poultry stocks as of May 31^st are projected to be down 2.2% from the previous month. Overall supplies remain below year-ago levels. Brown predicts total meat and poultry stocks to be about 2.163 billion pounds.

Beef, pork, and chicken stocks are expected to be down versus the previous month...

June 1 Cattle On Feed Projected 3.2% Below Year-Ago

Market analysts and economists participating in the Urner Barry monthly Cattle on Feed survey predicted on average the June 1 on-feed number at 3.2% below a year ago. On feed estimates ranged from 96.4% to 96.9% of year-ago levels. 

USDA will release its monthly on-feed report at 3 pm eastern time Friday.

Placements of young cattle in May were predicted on average at 1.7% above a year ago. If accurate, it would be the first time that placements increased year over year since August 2022. The range of guesses...

Black Sea Grain Deal Hangs in Balance Once More Ahead of Approaching Deadline

Moscow has once again signaled that it is unlikely to extend the Black Sea Grain Initiative, which is set to expire on July 18.

The Initiative was launched by Ukraine, Türkiye, Russian Federation, and the United Nations last summer to enable Ukrainian exports of grain, foodstuffs, and fertilizer through three key Ukrainian ports in the Black Sea—Odesa, Chornomorsk, Yuzhny/Pivdennyi. 

Last month, all parties agreed to extend the U.N.-brokered deal for another 60 days with Russia demanding that logistical and financial obstacles to its own ...

Senator Marshall Introduces EATS Act Ahead of  Prop 12 Implementation Date

On Thursday, Senator Roger Marshall (R-KS), introduced a bill called the Ending Agricultural Trade Suppression (EATS) Act, to “prevent States and local jurisdictions from interfering with the production and distribution of agricultural products in interstate commerce, and for other purposes”.

Congresswoman Ashley Hinson will be leading this effort in the U.S. House of Representatives, added Marshall's office. The EATS Act would prevent states like California from regulating farmers nationwide. 

"The United States is constantly faced with non-tariff trade barriers from protectionist countries, hurting American agriculture's access to ...

UPSIDE Foods Lands USDA Label Approval in Another Step Towards Commercialization

Cultivated poultry and seafood firm UPSIDE Foods obtained label approval for its cultivated chicken from the U.S. Department of Agriculture (USDA).

The company said that with the approval, UPSIDE can now work towards landing a Grant of Inspection (GOI) for its Engineering, Production, and Innovation Center (EPIC), the last remaining item in the pre-market regulatory process before the company can commercially produce and sell its cultivated chicken in the United States.

The label uses the term “cell-cultivated chicken...

Protein Producers Dominate Whole Foods Market’s Annual Supplier All-Star Awards

Whole Foods Market unveiled its annual Supplier All-Star Awards list and nearly half of the 15 brands recognized were producers of protein. From eggs and poultry to seafood and plant-based options, various producers were honored.

This year’s recipients, who are being honored for their contributions throughout 2022, include brands ranging from 2 to 28 years on Whole Foods Market’s shelves. The awards, now in their 11th year, were previously called Supplier of the Year Awards...

Fed Keeps Interest Rates Unchanged but Signals Additional Hikes in Future

For the first time in over a year, the Federal Reserve left its target range for the federal funds rate unchanged at 5 to 5.25% following the conclusion of its two-day policy meeting. 

Prior to today's decision, the Federal Open Market Committee (FOMC) had hiked interest rates ten straight times in an effort to tame stubbornly high inflation. 

The latest decision was widely anticipated after the latest inflation reading, which indicated that inflation continues to slow from its June 2022 peak of 9.1%. In May, annual inflation eased...

Cattle Complex Slips at Midweek While Hogs Rally on Firmer Cash

The cattle complex on the Chicago Mercantile Exchange tumbled at midweek, sending August live cattle sliding to a nearly two-week floor. Feeder futures led the declines, with losses for the August through November contracts ranging from $4.05 to $4.55 per cwt despite weaker corn prices at the closing bell for livestock futures.

Grain futures are up sharply so far Thursday as traders monitor dry conditions in the nation's major crop-producing regions. Corn futures are up by about 9 to 10 cents and soybeans are showing...

CDFA Explains Distributor Requirements in Part Two of Prop 12 Webinar Series

In part two of the California Department of Food and Agriculture’s (CDFA) Animal Care Program Proposition 12 webinar series, the CDFA explained requirements for distributors selling or distributing covered products to an end-user in California.

Dr. Elizabeth Cox, Animal Care Program Manager at CDFA, and Dr. Annette Jones, Director of the Animal Health and Food Safety Services Division at CDFA, hosted Tuesday's webinar.

The distributor is one step above the end user. End-users are as follows: retail location (no further distribution), a consumer (personal consumption), restaurant of a food facility, or a food processing facility or cottage food operation...

The Retail Rundown: Higher Priced Steaks This Father's Day

Heading into Father's Day weekend, beef features climbed to the top spot with 29.6% of total retail buying opportunities. Pork followed with 26.2% of total protein ad space. Seafood features came in at 23.3%, while chicken features account for 13.2%. 

According to the National Retail Federation and as reported by Urner Barry’s Ryan Doyle, spending for Father’s Day this year is expected to reach a record-high $22.9 billion, up from last year’s $20 billion. The previous record was held by 2021 at $20.1 billion...

Annual Inflation Slows to 4.0% in May, Lowest Since March 2021 

The Bureau of Labor Statistics released the latest Consumer Price Index (CPI) data Tuesday morning, showing the index in May up 4.0% on the year and slightly below expectations. This was the smallest annual increase since March 2021 and marked the eleventh consecutive month of year-over-year declines.

In April, annual inflation was reported at 4.9%. Additional signs of cooling inflation in the latest data boosted optimism among traders that the Federal Reserve may pause interest rate increases for the first time in a year and a half. The Federal Reserve...

Crop Conditions Decline as Dry Weather in Corn Belt Lingers, Futures Jump

Corn plantings are now completed and emergence in the latest Crop Progress report continues to progress, currently at 93%. This is up from both the five-year average and year-ago progress of 87%.

Corn condition ratings are as follows: 10% excellent, 51% good, 31% fair, 6% poor, and 2% very poor. The 61% in good to excellent condition compared to 72% the year prior at this time and 64% last week.

Global supply concerns along with the decline in good to excellent corn conditions are lifting corn futures...

New Bill Could Help Solve Restaurant Industry’s Labor Challenges Through Work Program

The National Restaurant Association highlighted the Essential Workers for Economic Advancement Act (HR 3734), a new bill that could help address workforce challenges that continue to hamper the restaurant industry.

EWEA was introduced by Reps. Lloyd Smucker (R-PA) and Henry Cuellar (D-TX). It includes a program that will allow workers to come to the U.S. on “market-driven, non-immigrant, three-year visas.”

The program is intended for small businesses in industries with comparatively low sales per employee. It would be available for non-agricultural jobs...

NAMI Hosts Prop 12 Webinar With California Department of Food and Agriculture

On Monday, the North American Meat Institute (NAMI) along with the California Department of Food and Agriculture (CDFA) hosted a webinar exploring enforcement, documentation, and transition ahead of Proposition 12, which is set to go into effect July 1.

Speakers included Dr. Elizabeth Cox, who currently leads the Animal Care Program for the California Department of Food and Agriculture, and Dr. Anette Jones, Director of the Animal Health and Food Safety Services at CDFA.

Proposition 12 is a California law first approved by California voters...

Blue Apron Sells Operational Infrastructure to FreshRealm, Shifts Focus to Direct-to-Consumer

Blue Apron said it had closed a deal to transfer its operational infrastructure, which includes fulfillment centers, equipment, know-how and related personnel, to FreshRealm.

The company said it received $25 million of upfront cash and could receive up to $25 million of value upon the achievement of certain milestones.

The deal will see FreshRealm become Blue Apron’s exclusive meal kit supplier, with the deal having an initial term of 10 years.

Blue Apron and FreshRealm entered into license agreements, under which...

Oil Futures Slump Ahead of Upcoming FOMC Meeting

Oil futures shed more than 3% early Monday ahead of the Federal Reserve's two-day policy meeting, which begins on Tuesday.

Traders are awaiting the central bank's decision on interest rates and whether a pause will be implemented. The streak of rate hikes dates back to March 2022 as part of the Fed's ongoing efforts to slow inflation.

Also ahead is the inflation data for May 2023, which will be released by the Bureau of Labor Statistics Tuesday morning. Annual inflation in April was reported at 4.9%, the smallest 12-month increase since April 2021...

Live Cattle and Feeder Futures Snap Streak of Higher Closes

After scoring fresh contract highs again at midweek, live cattle futures finished sharply lower Wednesday, snapping their nine-day streak of firmer closes. 

The June live cattle contract closed 82.5 cents lower at $179.00 per cwt but remains overbought. The deferred contracts formed outside bearish reversals. 

Feeder futures also scored new highs yesterday before nosediving, sending most actively traded August to a nearly one-week floor. The front-month finished $4.15 lower at $239.10 per cwt while September was down $4.25 to $242.275 per cwt...