FEEDSTUFFS PRECISION PORK Market Report – July 10

We start this week with a message of unity and urging to stay
strong, America. We will get through these challenging times,
says Feedstuffs Precision Pork host and Provimi market analyst
Dave Bauer.


In the news this week, the U.S. Department of Agriculture
released its monthly export report. Bauer walks us through that
and what it all means. 


Also addressed are daily slaughter rates, which have reached as
much as 92% of capacity, resulting in a couple of weeks of 2.59
million and 2.62 5 million head kills. Bauer explains that packer
run rates are no longer the headline story. Yes, they are still
key, but the focus now turns to processing and food service
capacity. “It's now their turn to drive supply chain recovery,
and the resulting demand will drive price recovery,” says
Bauer.

Slaughter may be back at 92% of daily capacity but it has been at
a cost to product values. The supply chain is like a
multidimensional puzzle and run rates are but one dimension of
that puzzle, says Bauer.


On the topic of profitability, the forward curve is holding value
and on Thursday even made some technical moves higher. It still
is dependent on when we can reduce the backlog of market animals
created by disrupted supply chain per USDA, says Bauer.

These are uncertain times and it will pay dividends to be
well-prepared. If you have questions on this week’s recap or want
to discuss something not covered, feel free to ASK DAVE
at David_Bauer@cargill.com. Plan today for
tomorrow’s success.


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