ANALYSIS: Chicken Wings Head into Overtime

It isn’t often that chicken wings continue to command the limelight in Q2. But despite the conclusion of March Madness, and in the absence of any wing-centric holidays on the immediate horizon, the market...

ANALYSIS: Cash Cattle Slow to Rise Despite Soaring Beef Prices

Around this time last year, the pandemic drastically altered consumer buying behavior due to dining restrictions and...

Australian Beef Seasonal Outlook: Green Grass and Empty Pens

With breeding cattle inventory recovering from the lowest levels in over 30 years, there’s a unique opportunity to assess and then act on the future for the Australian beef industry. A number of challenges currently confront the Australian beef industry, including high cattle prices, low supplies, and China trade access. Australia’s position in the global protein world needs to be considered in rebuilding the herd.

Is Australia to be a supplier to high-quality niche markets, commodity supplier (of lean beef) to global trade, exporter of live cattle, or exporter of value-added beef to trade markets? “Any or all of these options may apply, but choosing one sets a path for the future. Decisions taken this year are not just about...

ANALYSIS: Turkey Thigh Meats Get a Leg Up

With springtime now in full swing, seasonal outreach is beginning to develop...

ANALYSIS: Pork Ribs Soar into April

Pork ribs traditionally witness a rally starting in April which extends into the summer months as increased demand for grilling reaches its peak. This year however...

PODCAST: UK Beef Chats Episode 11

This week on UK Beef Chats, Market Reporter Mike Nesbitt explains the uptick in seasonal demand for the summer months, touches on the reopening of dining across the UK, and more!

ANALYSIS: WOGS--How Quickly We Forget

It’s no secret that the vast majority of key lines within the chicken complex have performed quite admirably throughout Q1...

Poultry Quarterly Q2 2021: The Bumpy Road to Recovery

The outlook for the global poultry industry is gradually improving, but big differences remain between countries, and global poultry trade is still very competitive. The industry is facing major challenges due to Covid-19-related market disruption, very high and volatile feed prices, avian influenza (AI) in the northern hemisphere, and volatility coming from a bumpy recovery in countries affected by African swine fever (ASF). Key for producers will be to have a very disciplined supply growth, a focus on cost reduction via procurement, production efficiency, and feed formulation, as well as being prepared for big swings in demand driven by Covid-19-related government decisions.

As countries reopen foodservice, and while their control of Covid-19 improves, the poultry industry will start to recover. On average, 35% of global poultry consumption is via foodservice. “In countries where several of these disruptive factors come together, broiler prices have risen to high levels. Some governments have started to...

ANALYSIS: Turkey Cold Storage: Lending Credence to the Strong Market Climate

The latest release of February’s Cold Storage Report further validates the strong seasonal performance that most key lines within the turkey complex have exhibited...

Meat Purchases and Confidence at Record Highs

Americans are buying more beef, pork, poultry, and lamb than ever as increased time at home during the pandemic sent meat grocery sales soaring by 20% (IRI) from 2019 to 2020.

The national analysis released shows that three out of every four Americans agree meat belongs in healthy, balanced diets (up by nearly 20% since 2020), and 94% say they buy meat because it provides high-quality protein.

Meat Institute President and CEO Julie Anna Potts commented...

REPORTER: Industry Veterans Come Together to Open Colorado Lamb Processors

This article was originally featured in the Spring 2021 Edition of Urner Barry's Reporter magazine.

As Easter and Passover approach, one cannot help but to think about lamb when planning a holiday meal. This year, there’s a good chance you could be eating lamb that has passed through the country’s newest lamb harvesting facility—Colorado Lamb Processors in Brush, Colorado.

Colorado Lamb Processors, which opened in September 2020, is the first new lamb processing facility to be built in the...

African Swine Fever: A Global Update – Ongoing Change in Global Pork Markets in 2021

African swine fever is actively influencing pork markets around the world, creating many areas of uncertainty – mainly in China, but also in Germany – which will not be resolved quickly. The implications of ASF for world pork trade are a major swing factor in global pork markets.

ASF influence on pork markets: China is the most obvious country where ASF continues to have a major influence. Its spread over winter highlights the challenges of managing this disease, and it has complicated the picture of China’s pork supply and demand. The ongoing pressure from ASF’s spread in Germany is also...

ANALYSIS: All-Fresh Beef Retail Averages Record High in 2020

All-fresh beef retail values, the measure of prices of all beef quality grades in grocery stores as reported by the U.S. Department of Agriculture, averaged...

ANALYSIS: MSC Enjoys Unseasonal Updraft in Value

It isn’t often that MSC takes the spotlight, especially so early in the year before seasonal springtime demand has a chance to fully develop, but...

Food Price Surge is Unlikely to Revert

Agricultural commodity prices have surged almost 50% since mid-2020, causing concerns over food price inflation around the world and sometimes resulting in increased export taxes and quotas by producers at a time when importing countries want to import more.

Rabobank can identify four major factors driving the surge across agri commodities that will remain active in 2021: 1) US dollar weakness: Rabobank forecasts the US dollar to remain soft through 2021 (US dollar index -7% lower since mid-2020), but no further weakness is expected. 2) Weather: La Niña could extend into the US spring planting season. 3) Global demand: Good global demand (either for animal feed or storage) to continue through...

ANALYSIS: Egg Prices Surge to 11-Month High on Strong Retail, Foodservice, Export Demand

A combination of retail, foodservice and export demand sent shell-egg prices soaring to an 11-month high this week. After holding steady for more than...

ANALYSIS: Cash Cattle Prices Are Stuck in Limbo

The weekly USDA five-area direct average fed steer price last week was $114.07/cwt, steady with the previous week but $0.78/cwt less than...

Beef Quarterly Q1 2021: New Drivers in Cattle Innovation

Increasing awareness of the need to improve environmental and social outcomes, together with a growing appetite from investors in animal protein, are creating new opportunities and growth in cattle innovation.

“We believe that research and innovation in the beef industry will continue to evolve but we are currently enabled by two main catalysts that will stimulate this further. Firstly, new investors in the space and secondly, the sustainability drive that not only seeks production improvements but also creates...

ANALYSIS: Pork Cold Storage Lingers at Low Levels

Total pork cold storage continues to linger around decade lows, creating a tight supply condition and a base layer of price support for a number of...

ANALYSIS: January Chicken Cold Storage Holdings: Talk About a Clean Sweep

Several months ago, we spoke about the near universal downturn exhibited in chicken cold storage figures and by the looks of the USDA’s most recent report, that same undertone...

ANALYSIS: An Early-Year Check-up on Turkey Cold Storage Holdings

As we turn the corner into late Q1, turkey market participants are peering into the freezer to evaluate how the supply side of the equation is fending so far this year...

COVID-19 Disruptions Create New Areas of Opportunity and Risk for the Poultry Industry 

Covid-19 is disrupting the business in ways the global poultry market had never planned for, creating new areas of opportunity and risk. The impacts of Covid-19 are spread very unevenly between regions and between companies.

“Company leaders and investors need to constantly review market conditions and adjust company positioning to optimize growth and returns. There will be bigger differences between winners and losers, which will lead to a process of accelerated capital investments, consolidation, and internationalization in the coming years,” according to Nan-Dirk Mulder, Senior Analyst – Animal Protein.

Rabobank has identified three stages of Covid-19’s impact on the global poultry industry...

A Look at Protein Demand as the Six-Week Lenten Period Begins 

As the six-week Lenten period leadup to Easter begins, foodservice and retail are catering to those who cannot eat meat at least one day a week. As SeafoodNews reported, restaurants like Bojangles, White Castle, and Quizno’s are just a few offering seafood items for a limited time.

Last year, Popeyes brought in a limited time Buttermilk Biscuit Shrimp offering for Lent. To switch things up this year, Popeyes introduced a new contender in the "Chicken Sandwich Wars," a Cajun Flounder Sandwich. But how could a new fish sandwich offering during Lent impact the chicken sandwich battle, which has become...

US Beef Demand: The Risk of Recovery

The optimistic anticipation of a post-pandemic world continues to intensify with the ongoing distribution of Covid-19 vaccines. From a beef industry perspective, virus control will relieve much of the current strain on the processing and distribution sectors.

Throughout the next several years, innovations accelerated by Covid-19 will go live, as well as technological advancements across the supply chain. Simultaneously, tighter cattle supplies from a declining beef cow herd will...

ANALYSIS: Do Large Forward Sales Help Future Spot Prices -- Strip Loin Rally in 2021

The January rally in strip loins has been fierce, with gains of 27 percent so far since the start of the year, compared to...

ANALYSIS: Don’t Sleep on Chicken Leg Quarters

With chicken front half items continuing to be the talk of the town, it’s easy to overlook the slightly less exhilarating, albeit seasonally admirable, status of frozen leg quarters...

ANALYSIS: Boneless Chicken Breasts in the Crosshairs

One of the first things that any Econ student quickly gets acclimated with is how the quantity of a given commodity that manufacturers want to sell and the quantity of consumers who wish to buy, interact with one another...

ANALYSIS: The Tug of War Between Chicken Wings and Boneless Breasts

During October of last year, we explored the growing price disparity between jumbo boneless breast quotations and jumbo-sized whole wings...

Urner Barry Releases January Emerging Plant Protein Report

Plant based startups are increasing their use of both sunflower seed proteins and oils in formulation of their meat analogue and plant-based snack creations. The protein content of a sunflower kernel ranges between 20% and 40%, complemented by an array of high-quality nutrients which...

Urner Barry Presents Plant Protein Insights Webinar 

The plant protein sector is developing rapidly around the globe. Innovative and unique offerings enter the market daily under increased pressure for sustainable and nutritious alternative food options. Demand for plant protein ingredients has become an important benchmark for manufacturers, ingredient providers, startups, traditional protein suppliers, and investors interested in this space.

Join Urner Barry on Thursday, January 21, as host Laura Zinger interviews...

ANALYSIS: Boneless Chicken Breasts Blaze the Seasonal Trail

Since the year’s outset, several key lines within the chicken white meat complex have experienced a considerable uptick in...

ANALYSIS: Chicken Wings Start Year Undefeated

With NFL playoff season at our doorstep, wing marketers are ordinarily gearing up as they prepare for one of the busiest quarters of the year...

Urner Barry Releases January Pulse Protein Report

Demand for further processed pulse ingredients continues to steadily increase in parallel to improved protein innovation technologies with meat and dairy analogue products. Fava beans, a type of broad bean pulse crop, have garnered recent increased interest as the versatility and functionality of the protein as well as...

Survey: Meat Will Be a Key Ingredient for Americans Resolving to Eat Better in 2021

As many Americans are into week one of a new eating regimen, Applegate found that 72% of those surveyed believe meat should be part of a healthy diet and that 55% are resolving to cut back on sugar.

Despite the rising popularity of plant-based trends and lab-created “meat” substitutes, the survey found 58% of adults have no plans to consume less meat in 2021 and illustrated how consumers are seeking natural and organic meat products with...

ANALYSIS: Frozen Turkey Drums Continue to March Forward

Turkey marketers are welcoming 2021 with open arms thanks to the relatively admirable set of early-year trade conditions...

Cal-Maine Foods Reports Second Quarter Fiscal 2021 Results

Cal-Maine Foods, Inc. reported results for the second quarter of fiscal 2021 (thirteen weeks) and twenty-six-week period ended November 28, 2020.

Net sales for the second quarter of fiscal 2021 were $347.3 million, an 11.5 percent increase compared to $311.5 million for the second quarter of fiscal 2020. The Company reported net income of $12.2 million, or $0.25 per basic and diluted share, for the second quarter of fiscal 2021, compared to a net loss of $10.1 million, or...

REPORTER: Egg Product Markets Rally to Second Half Highs

Though retail demand for shell eggs has run significantly above average since the peak pandemic period, foodservice demand has struggled to return to normal volumes. As much as 22% of all U.S. production is destined for this channel, around 7% being shell eggs and the rest going into the sector in the form of egg products.

Processors have been forced to reduce outputs over the last eight months, evident in the USDA’s Eggs Processed Under Federal Inspection report, which showed total cases broken running at about 1.1 million a week from...

Understanding Price Risk Management: an Interview with Stable

Urner Barry sat down with Richard Counsell to understand more about Stable’s business and the help they are providing the industry with their risk management tools. Growing up with a farming background in the southern UK, Richard spent his early career managing both commodity and technology focused businesses in London, Chicago and Melbourne. As the CEO of Stable, Richard currently divides his time between London, Minneapolis and Bermuda, expanding Stable's global platform to match complex commodity risks with simple financial solutions.

1. For the readers who have not yet heard of Stable, can you give a quick summary of your business?

Stable offers customizable price risk management tools across untraded, non-futures based agricultural markets. Our aim is to...

Sanderson Farms Reports Results for Fourth Quarter and Fiscal 2020

Sanderson Farms, Inc. reported results for the fourth quarter and fiscal year ended October 31, 2020.

Net sales for the fourth quarter of fiscal 2020 were $940.0 million compared with $906.5 million for the same period a year ago. For the quarter, the Company reported net income of $27.9 million, or $1.26 per share, compared with...

ANALYSIS: The Impact of External Variables on the Turkey Hatch

In retrospect, the turkey market landscape has shifted dramatically in only a couple short years...

Urner Barry Releases First Emerging Plant Protein Report

Plant-based firms remain committed to finding alternative sources of protein and functional ingredient components. While soy, wheat, and pea proteins are the most utilized ingredients to date, numerous other innovative and unique options emerge to fulfill growing demand for sustainable, cheap, functional, and nutritious food items. Currently, consumers have increasingly expressed...

Strong October for Pork and Beef Muscle Cut Exports; Variety Meat Trends Lower

U.S. pork exports posted broad-based gains in October, solidifying 2020’s record pace, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef muscle cut exports were also higher than a year ago in October, though lower variety meat volumes pushed total beef exports slightly below last year.

October pork exports were up 8% year-over-year to 242,536 metric tons (mt), with value also increasing 8% to $641.1 million. Through the first 10 months of the year, exports were 15% ahead of last year’s record pace at 2.46 million mt, with value up...

PODCAST: An Economic Point of View - Will Sawyer of CoBank

This week on Market Digest Laura speaks with CoBank Lead Protein Industry Analyst, Will Sawyer. Will brings his expertise to the plate as they discuss holiday demand for protein items, protein supply, the beef complex, corn and soy inflation, and...

Changed Beef Consumption Habits Following COVID-19 Create Opportunities

The global Covid-19 pandemic and African swine fever (ASF) have changed beef consumption patterns through 2020. While total beef consumption has not seen too much change, we have seen distribution channels change, benefiting some at the expense of others. As the impacts of ASF are overcome and disruptions from Covid-19 subside, old distribution channels will recover.

“It is likely that many consumers will revert to their previous habits, but we do see opportunities for...

ANALYSIS: What’s Next for Whole Body Turkeys?

After processors successfully marketed their whole body tom and hen production and the fruits of their labor are being enjoyed, they now shift their attention...

ANALYSIS: Weighing in on Turkey Drums

With much of the turkey industry now focused on satiating whole-body bird demand, supply side tightness, particularly within...

ANALYSIS: Medium and Jumbo Boneless Breasts: Straying From the Traditional Price Spread

Historically speaking, medium-sized boneless breasts have enjoyed a clear-cut premium over their jumbo-sized counterparts...

ANALYSIS: Turkey Drums Find Their Rhythm

With November now upon us, whole body turkeys are commanding much of the seasonal spotlight, however...

ANALYSIS: Egg Product Market Comes to Life

Though retail demand for shell eggs has run significantly above norms since the peak pandemic period, foodservice demand has struggled to...

Pilgrim's Pride Reports Third Quarter Financial Results

Pilgrim’s Pride Corporation reports third quarter 2020 financial results.

Third Quarter Highlights

• Net Sales of $3.08 billion.
• Net GAAP Income of $33.4 million. Adjusted Net Income of $161.7 million or adjusted EPS of $0.66 excluding $110.5 million DOJ agreement.
• Consolidated Operating Income margin of 3% with Adjusted Operating Income margins of 6.7% in U.S. excluding DOJ agreement, 18.4% in Mexico and 3.5% in Europe.
• Adjusted EBITDA of $305.0 million, or a 9.9% margin, 18% higher than a year ago.
• Faced with the global Covid-19 pandemic, we continue to be guided by...

Rabobank: Pork Quarterly Q4 2020: Export Concentration a Potential Long-Term Risk

Global pork demand rebounded following Covid-19 disruption in most geographies, yet supply remains constrained in many Asian markets. This imbalance continues to support strong export demand from the rest of the world, resulting in sharply higher pork values.

Globally, processors’ ability to respond also remains constrained by labor availability, which limits packer capacity and efficiency. In Europe, new African swine fever (ASF) outbreaks add further limitations. “Hog producers face a challenging outlook, given rising feed costs, weaker economic trends, and slower export growth as China...

ANALYSIS: August Chicken Exports - The Devil is In the Details

What a difference a year makes. About this time in 2019, chicken processors and allied components of the industry were licking their chops in anticipation of...

ANALYSIS: Nothing Average About Turkey Weights

This year being what it is, or has become as the case might be, there is not a protein offering on the street that has not had its traditional market world uprooted. Demand patterns have...

ANALYSIS: Ribeye to Strip Spread Continues to Widen Into Year-End

If we look at the chart for the spread (or price difference) between the ribeye and strip loin, it usually...

ANALYSIS: Chicken Wings vs. “Boneless” Wings: An Opened Ended Debate

This year’s chicken market has been anything but predictable and despite their admirable performance, chicken wings are no exception...

ANALYSIS: Q4 Wing and Tender Performance Dependent on Price and Seasonality

It is certainly a relief to have our daily lives slowly returning to something we might recognize as normal. There is no doubt that is the case for...

ANALYSIS: The Spread Between Wholesale and Retail Beef Prices

During the COVID-19, wholesale beef prices have moved through phases as the situation changed...

ANALYSIS: Tallying up Turkey Tonnage

Today we thought it would be a good opportunity to take a step away from the day-to-day in favor of a broader look at the production side of the turkey equation...

ANALYSIS: Price Sensitivity Dictating Mexican Ham Demand

Over the years turkey thigh meat, the primary component of turkey hams, and boneless pork hams, have shared a distinct and somewhat polarized relationship with one another...

ANALYSIS: Jumbo Wings: A Mid-Year Coin Toss

2020 has been anything but predictable and the wing market is no exception. While a seasonal increase in buying interest and in paid prices is...

ANALYSIS: Chicken Cold Storage: A Mid-Year Freeze

Wednesday’s release of the USDA’s Cold Storage Report closely coincides with the current standing of most major chicken lines and also reflects...

Rabobank's Poultry Quarterly Q3 2020: Fragile Recovery After COVID-19 Storm

The global poultry industry is recovering from a storm that hit in 1H 2020, and the outlook is gradually improving. Poultry demand will be more bullish in 2H, as Covid-19 containment measurements are eased, lifting demand through foodservice.

Poultry demand is expected to improve in 2H. The biggest market driver will be the economic downturn, making global markets more volatile and price driven. Such conditions are generally positive for poultry, being the cheapest meat protein with a short and flexible production cycle.

Prices will see some recovery after historic lows in 1H. Breast meat should benefit from the reopening of foodservice, although trade will...

PODCAST: Calling All Pork People - ASF, Retail Demand, Exports, and More

In this week's segment Russell Barton discusses retail demand, slaughter, exports, African Swine Fever, and COVID-19...

ANALYSIS: The Sustained Flight of Whole-Body Turkeys

In terms of turkey trade activity, there isn’t a whole lot going on here in Mid-July. Market participants continue to contend with the widespread supply and demand challenges associated with...

ANALYSIS: Pork 2020 Comparison

The first half of 2020 was highly volatile in the pork market due to a myriad of factors. While cases of ASF continued to be reported across several...

PODCAST: Market Update on Eggs with Brian Moscogiuri

This week, Laura sat down with Brian Moscogiuri to cover price fluctuations since record highs in March, rebounding COVID-19 cases impact on demand, cage-free production and trends, and the European egg market reaction to the pandemic...