Livestock Marketing Information Center

Current Situation and Analysis
Last Updated: 6/18/2018
Trends . . . U.S. RED MEAT EXPORTS IN APRIL EXCEED EXPECTATIONS

       USDA’s Economic Research Service (ERS) published the U.S. monthly meat and poultry trade data for April. Those data are on a carcass weight equivalent basis.  Both beef and pork export tonnage exceeded expectations, while chicken remained lackluster. Beef posted the largest April on record on a tonnage basis, surpassing 2017 by 16%. Pork tonnage posted the largest month ever, coming in at 548 million pounds, with strong gains to Mexico, which was up 41% compared to a year ago.


more...
EXCHANGE RATES ADJUST AMID TRADE TURMOIL

      The most impressive exchange rates changes this year have been the devaluations relative to the U.S. dollar (USD) of the Argentinian Peso and the Brazilian Real. The Argentinian Peso has lost 24% of its value since the first of the year on a monthly basis, and the Brazilian Real is 13% below January’s.  Argentina’s currency devalued 51% in May compared to May 2017, while Brazilian Real was 13% weaker relative to the USD. These weaker currency values make Argentinian and Brazilian more competitive on the trade front. It’s considered a headwind to U.S.


more...
POULTRY SECTORS FACE MARGIN CHALLENGES

Overall chicken industry profitability so far this year, when adjusted for the mix of products produced has been slightly better than 2016, which was not a good year and far below 2017’s. Hatchery output is expected to reflect this situation, with hatchings up 2% this quarter but then tailing to unchanged from last year’s during the summer quarter, and maybe even a slight decline for the last quarter of the year. Much depends on the path of corn and soybean meal prices in coming months, and higher costs for these production inputs will skew chicken production decisions to the downside.


more...