Current Cattle Market Daily Headlines for December 18, 2020

by | Dec 18, 2020 | 0 comments

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Biden to pick Representative Haaland as interior secretary

https://www.google.com/amp/s/www.washingtonpost.com/climate-environment/2020/12/17/deb-haaland-interior-secretary-biden/%3foutputType=amp

  • Yesterday, President-elect Joe Biden chose Representative Deb Haaland of New Mexico, a member of the Laguna Pueblo tribe, to serve as the first Native American Cabinet secretary and head the Interior Department.
    • For weeks now, tribal leaders and activists around the country, along with many Democratic figures, have been urging Biden to pick Haaland.
  • With Haaland’s nomination, Indigenous people will for the first time in their lifetimes see a Native American at the table where some of the highest decisions are made.
  • In this role, Haaland will oversee roughly one-fifth of the land in the United States.
  • Haaland comes from New Mexico, a state that is well known for their production of oil and gas. Despite this fact, Haaland plans to transform the Interior Department from a champion of fossil fuel development into a promoter of renewable energy and policies to mitigate climate change.
  • Haaland’s ideas go hand-in-hand with Biden’s, as he would like to halt all new oil and gas drilling on public lands and waters.
  • The Interior Department also oversees massive protected areas; approximately 109 million acres of wilderness, 422 national park sites, national monuments and wildlife refuges. Furthermore, the department protects 1,000 endangered species.
  • Haaland’s appointment will influence 1.9 million Native Americans whose education and health care are impacted by the department’s decisions.

 

Beef packer margins decline 33 percent

https://www.drovers.com/markets/profit-tracker/profit-tracker-beef-packer-margins-decline-33

  • Packers experienced a 33 percent drop in profit margins last week. Even with that significant drop, they are still making profits of $332/hd., according to the Sterling Beef Profit Tracker.
    • The week before they were making a hefty $490/hd.
    • Packer margins slipped due to a $20/cwt. decline in the beef cutout, which averaged $217.90.
  • Cattle feeding margins took a big hit with a drop of 90 percent from $108/hd. two weeks ago to just $10/hd. last week.
    • Cattle feeders are less than thrilled with this decline as fundamentals show that the market should be much better than the prices they are receiving.
  • Last week, cash cattle prices declined about $3.50/cwt. to an average of $106. On top of that, feed costs are $15/hd. higher and feeder steer prices are averaging $30/hd. higher, all contributing to reduced profit margins.
    • Cash cattle prices were about $13/cwt. lower than the same week in 2019.
    • A year ago, cattle feeders were making a profit of $68/hd.

 

Cargill to close Canadian beef plant after coronavirus outbreak

https://www.reuters.com/article/us-health-coronavirus-carg/cargill-to-close-canadian-beef-plant-after-coronavirus-outbreak-idUSKBN28R37X

  • As of yesterday, December 17th, Cargill Inc. temporarily closed its Guelph, Ontario beef processing plant due to a Covid-19 outbreak among workers.
    • The plant employs 950 people.
      • Eighty-two workers have tested positive and 129 other workers are quarantining. The workers will continue to be paid during their absence.
    • Cargill’s Guelph, Ontario plant processes 1,500 head of cattle per day.
    • The company, who voluntarily closed its doors, doesn’t have a set date for reopening.
    • Beef Farmers of Ontario have asked Canadian and Ontario governments to activate a program that helps with the costs of feeding cattle longer when slaughter capacity is not available.

 

South Dakota creates grant program for small processors

https://www.meatingplace.com/Industry/News/Details/96311

  • In a speech at the capital in Pierre, SD, Governor Kristi Noem announced that a new $5 million grant program will be available to small processors that provide services to South Dakota-based producers.
    • This program is aimed at boosting the state’s capacity to produce meat products originating in the state.
  • Grant money can be used to pay for facility improvements, acquiring new equipment or other upgrades.
  • Noem also reported that South Dakota officials are working with USDA to offer the state’s farmers and ranchers the opportunity to sell their products across state lines.

 

Boxed beef prices

www.nationalbeefwire.com

  • Choice boxed beef: $209.51 (+2.29)
  • Select boxed beef: $193.70 (+1.61)

 

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