Cattle Current Daily—Nov. 19, 2019

Cattle Current Daily—Nov. 19, 2019

Last week’s weighted average 5-area direct price for fed steers was 59¢ higher at $115.19/cwt. on a live basis and 68¢ higher in the beef at $181.72.

Cattle futures firmed to start the week, helped along by the Tyson announcement regarding the reopening of its Kansas plant (see below).

Other than 40¢ and 2¢ lower at either end of the board, Live Cattle futures closed an average of 32¢ higher. 

Feeder Cattle futures closed an average of 35¢ higher.

Wholesale beef values were lower on Choice and higher on Select with moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.68 lower Monday afternoon at $239.12/cwt. Select was $1.26 higher at $215.59.

Corn futures closed mostly 2¢ to 3¢ lower.

Soybean futures closed mostly 6¢ to 8¢ lower Jul ’21 and then 4¢ lower.

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Major U.S. financial indices edged higher Monday, with little definitive impetus one way or the other.

The Dow Jones Industrial Average closed 31 points higher. The S&P 500 closed 1 point higher. The NASDAQ was up 9 points.

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Tyson Fresh Meats—the beef and pork subsidiary of Tyson Foods, Inc.—announced Monday that efforts to resume harvest operations at its Holcombe, KS beef plant will begin the first week of December, with intentions to be fully operational by the first week of January. It plans to resume receiving cattle at the facility the first week of December.

“We recognize the disruption the fire caused for our suppliers and our customers and are more than pleased to announce we are in the final stages of reconstruction,” says Steve Stouffer, group president, Tyson Fresh Meats. “Our team is ready to begin the process of ramping back up, recognizing that there will be testing and adjustments over the first few weeks to ensure equipment functionality while maintaining our commitment to team member safety and food safety.”

The Aug. 9 fire that disrupted operations severely damaged a critical part of the plant containing the hydraulic and electrical systems that support the harvest floor and cooler areas.

Before the fire, the plant was harvesting about 6,000 head of fed cattle per day, accounting for about 6% of total U.S. fed cattle packing capacity.

Reconstruction included completely replacing support beams and the roof, hydraulic piping and pumps, installing over 50,000 feet of new wiring and the reconstruction of all new electrical panel rooms and equipment.

Since the fire, cattle have been diverted to the company’s other beef facilities, where they were able to offset some of the production volume losses, to try and help mitigate disruption to cattle producers and customers and has continued to pay active, full-time team members for 40 hours per week. Team members have been instrumental in helping with cleanup and the reconstruction process.

2019-11-18T19:54:46-06:00

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