cancel
Showing results for 
Search instead for 
Did you mean: 
jrsiajdranch
Veteran Advisor

From the parlor pit. 2-23

Well it looks again like the American consumer has gone on an economic diet! We are eating less.

More beef, more butter, just plain more.  The livestock industry is gonna be hurting again pretty fast.

 

With the increase in Butter which was sorta dairy's fair haired child we are sunk again. Cheese inventories at least are not to burdensome.   But we got hit yesterday with a downer day and may get hit again as beef prices pull back.  The high price of culls had done a good job of pulling down milk production.Currently it looks like you can lock in a loss of 2-3$/cwt. for the rest of the year using milk futures.

 

More pork is gonna be hard on the integrators as well.

 

Lots of turkey to. Folks just ain't eatin out like they used to!

 

Total natural cheese stocks in refrigerated warehouses on January 31, 2012 
were down 1 percent from the previous month and down 7 percent from January 
31, 2011.

Butter stocks were up 60 percent from last month and up 44 percent from a 
year ago.

Total frozen poultry supplies on January 31, 2012 were up 8 percent from the 
previous month but down 11 percent from a year ago. Total stocks of chicken 
were down 3 percent from the previous month and down 21 percent from last 
year. Total pounds of turkey in freezers were up 41 percent from last month 
and up 17 percent from January 31, 2011.

Total frozen fruit stocks were down 9 percent from last month but up 
2 percent from a year ago.

Total frozen vegetable stocks were down 8 percent from last month and down 
slightly from a year ago.

Total red meat supplies in freezers were up 13 percent from the previous 
month and up 7 percent from last year. Total pounds of beef in freezers were 
up 5 percent from the previous month and up 4 percent from last year. Frozen 
pork supplies were up 21 percent from the previous month and up 8 percent 
from last year. Stocks of pork bellies were up 29 percent from last month and 
up 5 percent from last year.

Inflation is hitting the consumer really hard and rising gas prices are gonna hurt us even more.

 

Be safe!

0 Kudos
5 Replies
dennymal
Veteran Contributor

Re: From the parlor pit. 2-23

I know you dairy guys work your tails off-we milked 30 Holsteins growing up. I was really happy when dad decided to sell the cows and plow up the pastures to grow corn. Looking at the milk prices and feed costs how can you guys stay in business? I'm not sure if I buy people eating out less. My neighbor and I took our wives out last Thursday to a higher end restaurant in Des Moine and their was an hour wait. It looked like the other restaurants were pretty busy too. I know dairy has been hit hard but we're seeing good profits in hog production and the next 7-8 months look good too.

0 Kudos
jrsiajdranch
Veteran Advisor

Re: From the parlor pit. 2-23

Nasty thing about the dairy thingy is most of that butter was bought as AMF and then converted into BF for the EU market using product from the GDT auction!

0 Kudos
GoredHusker
Senior Contributor

Re: From the parlor pit. 2-23

I gotta agree.  I got so spooked when the rhetoric of 5 dollar gas became mainstream that I hedged fats on the April 13' contract last week.  I read a report last week that said the average consumer is currently spending 8.4 percent of their income on gas.  The national average on gas price is in the 3.55 range give or take a few cents.  What percent will they be spending if gas hits 4?  What percent at 5?  Europe is in a recession, and high dollar fuel will put us there as well.  It does not bode well for commodity prices. 

0 Kudos
kraft-t
Senior Advisor

Re: From the parlor pit. 2-23

Tulsa is the same way inthat restuarants are usually busy and full during the evening hours. I guess oklahomans have decided not to participate in the recession any longer.

0 Kudos
jrsiajdranch
Veteran Advisor

Re: From the parlor pit. 2-23

Here a funny one. My wife gets a phone call from a friend last night. Freind is really complaining about food prices, cost of milk and cereal especially. Where was she calling from? HICKORY PARK!

0 Kudos