Supply Chain:
The USDA estimates 2020 beef production at 27,511 million lbs. which is down 255 million from the March estimate. Beef export sales for the week of 4-2 were more than 15,000 MT, which was down 13% wk./wk. Accumulated beef exports are running more than 27% above this time last year.
Smithfield Foods the world’s biggest pork producer is suspending production in its Sioux Falls, South Dakota facility indefinitely. That facility accounts for 4% to 5% of U.S. production. The April WASDE update to pork production had a 50 million lb. increase to 29.049 billion lbs.
Markets:
Cash Beef is posted at 1.05 or 7.00 lower. Deliverable April through Red April futures are all locked limit down. Cash Hogs are posted at 52.97 or 2.55 lower. The lead month April is 1.07 higher at 43.92 cwt while may through July are limit down.
I would keep an eye on the kills looking for them to drop off a bit as they did previously but bear in mind as things begin to open up there is likely going to be a scramble to meet the demand and producers will need to fill the voids created by panic purchases of late.
All the grains are dropping off, currently, apart from HRW. Beans are hardest hit being 10 ¼ lower at noon Eastern.
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