Meat + Poultry - May 2008 - 69

MEAT ECONOMICS
ECONOMIC

INDICATORS

FOR

PROCESSORS

Chicken breast, boneless, skinless

Chicken wings

Central, f.o.b. plant, $ per cwt

$200.00

$155.00

$180.00
$135.00

$160.00
$140.00

$115.00

$120.00
$95.00

$100.00
Apr

Jul

Oct

Jan

World leaders have begun clamoring for rolling back biofuel mandates as rising food prices raise the ire of consumers domestically while a global food crisis ensues. Many
analysts have fingered the increased production of ethanol
from corn as one cause of the crisis. Chief executives of
U.S.-based meat- and poultry-processing fi rms have been
outspoken about the impact of ethanol production on food
prices in recent months and more recently, global leaders
and state lawmakers have voiced their concerns.
British Prime Minister Gordon Brown said this past
month that the U.K. will rethink its biofuels targets, while
U.S. Energy Secretary Samuel Bodman admits the growing emphasis on corn-based ethanol has contributed to
higher food prices.
On April 25, Texas Governor Rick Perry asked the federal government for a 50 percent waiver from the federal
renewable fuel standard (RFS) mandate for ethanol produced from grain in an attempt to get relief from high food
costs. Tyson Foods Inc., Springdale, Ark., and Pilgrim's
Pride Corp., Pittsburg, Texas, issued separate statements
supporting the governor's effort.
"There are multiple factors contributing to our skyrocketing grocery prices, but a waiver of RFS levels is the best,
quickest way to reduce those costs before permanent damage is done," Governor Perry said.
The year's plantings have been delayed because of continued cold wet weather in key Corn Belt states. According
to the USDA, only 4 percent of plantings had occurred by
April 19, vs. the five-year average of 17 percent. Almost no
plantings had occurred in Iowa, Illinois or Ohio.
Soybean planting progressed across the South, Southeast and Southwest but lagged the average pace in several
states. Planted as of April 20 was 5 percent of the crop in
Arkansas, 31 percent in Louisiana, 24 percent in Mississippi,
44 percent in Texas and 43 percent in Oklahoma according to the U.S. Department of Agriculture said.
Soybean and soybean meal futures prices declined in
I

MEAT&POULTRY

Jul

Oct

Jan

Meat and poultry

Feed grains

Apr

May 2008

www.MEATPOULTRY.com

April 18
Central, f.o.b. plant, $ per cwt
Beef
Cutout value, 600-900 lbs
151.21
Ribeye, 112A, heavy
503.25
Loin strip, 180 bnls, heavy
480.00
Trimmings, 90% fresh
136.25
Trimmings, 50% fresh
81.00
Pork
Cutout value, 185 lbs
67.50
Trimmings, 72% frozen
47.00
Trimmings, 42% frozen
37.00
Ham, 20-23 lbs
59.25
Bellies, 16-18 lbs
73.00
Chicken - cents per lb, Northeast
Breast, bnls, skinless
139.00
Wings
94.25
Thighs, bnls, skinless
122.00
Trimmings, 15%-20% fat
18.48
Leg quarters, skin on
Turkey - cents per lb
175.50
Breast, 4-8 lbs, bnls, skinless
175.25
Tenders, destrapped
174.00

Year
ago
162.58
621.50
593.50
143.00
90.00
71.21
40.00
44.00
60.00
96.00
170.50
126.25
109.50
13.71
39.75
236.00
219.00
210.00

Stock indexes
April 18
close
Meat and poultry
10266.25
Diversified food products 11025.13
Food ingredients
18079.51
Retailers
12953.96

52-week
High
Low
12296.47 8947.73
11990.42 10395.58
18417.37 13845.73
14657.06 12089.88

The Meat and Poultry index includes Sanderson Farms, Inc.; Hormel
Foods; Pilgrim's Pride; Tyson Foods, Inc.; and Smithfield Foods, Inc. The
Diversified Food Products index includes Cadbury Schweppes; Campbell
Soup Co.; ConAgra Foods, Inc.; CoolBrands International; General
Mills, Inc.; Hain Celestial Group; HJ Heinz Co.; J.M. Smucker Co.; Kraft
Foods Inc.; PepsiCo, Inc.; Ralcorp Holdings; and Sara Lee Corp. The
Food Ingredients index includes Archer Daniels Midland Co.; Bunge;
Corn Products International, Inc.; M&F Worldwide Corp.; McCormick &
Company, Inc.; and MGP Ingredients. The Retailers index includes Kroger
Co.; Publix Super Markets; Safeway, Inc.; Supervalu and Wal-Mart Stores.

http://www.MEATPOULTRY.com

Meat + Poultry - May 2008

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