USDA released its 2020 Farm Income forecast yesterday. It has been a tough year for broilers. Receipts are expected to fall $6.7 billion (23.7 percent) in 2020, because of significantly lower prices.
Despite recovered processing margins so far for the second half of the year, margins to date are 16 percent below last year. Heavier birds have kept broiler meat production steady despite fewer birds slaughtered. For Q3 2020, broiler meat production is down 0.4 percent, based on a reduction in slaughter of 1.6 percent.
There is continued pressure on the sector with more COVID uncertainty hanging over what is now otherwise steady demand. And then there are feed costs, which are a direct cost for chicken companies’ cost of goods sold...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
