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Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more. |
60% of the U.S. cow herd is now in some level of drought or dryness, with 46% of the country, especially in the West, now in some level of drought, as seen in the following chart.
Trends have worsened in North Dakota and California in recent weeks. The quick progression of the drought this year is faster than any drought in the past 20 years. That is driving more cows to slaughter.
The number of cows processed in March was up 10% YOY, and April was up 4-5% as it lapped increased slaughter last year, which was up 7%.
The higher cost of feed is causing ranchers to keep the cattle on pasture longer which is complicated by the drier conditions. Retail prices for choice beef in April increased 4.2% from March and increased 4.8% YOY.
Argentina recently limited exports of beef to fight high inflation. Retail pork prices set a record in April at $4.32 per pound, up 3.8% from March and up 11% YOY.
Chicken retail prices, on the other hand, have fallen each month this year. April was 1.8% lower than March and 3.6% lower YOY.
