Key Commodity Trends
- - From the Cattlenetwork - Cattlemen's attitudes were bullishly positive! Drought, hay shortages, and row cropping has forced breeding stock off their range over the last year and a half and the results of this herd reduction are just now starting to show. Weekly feeder cattle receipts in last year's drought ravaged Southeast are already running 9 percent lighter than 2007 and this shortage should become even more prevalent as the summer progresses.
Research Edge translation - beef prices are going higher for the balance of 2008!
- CornThe CEO of Pilgrim's Pride (PPC), Clint Rivers, spoke in NYC this week and said - "I think today the industry is thinking in terms of placing (chickens) for $6 corn when I think we should realize the potential for $8 corn is certainly there and I think we should be in a position to deal with that. PPC recently announced it was cutting production about 5 percent, largely due to higher feed costs.
Research Edge conclusion - The restaurant industry to see higher chicken price for the foreseeable future.