u.s. gov't shutdown forces cargill, smithfield to change hog pricing - meat packers

by:Demi     2019-09-13
u.s. gov\'t shutdown forces cargill, smithfield to change hog pricing  -  meat packers
Chicago, October 5Reuters)-U. S.
Meat Packers Shi Food Co. , Ltd. and Cargill said they would change the method they used to determine the part of the hog market on Monday at the high price paid. S.
The government is closed.
These companies usually use data from the United States. S.
Agricultural marketing services of the Ministry of Agriculture determine the cash value of live pigs.
However, due to the government shutdown that began in October, the USDA market price has been suspended. 1.
The largest Smithfield in the United StatesS.
In a letter to producers on Friday, pork packers said it would start using data from CME Group to price pigs.
The Chicago Mercantile Exchange has contracts for livestock trading.
"We have determined that replacing the harvest day with the daily changes at the close of the Chicago Mercantile Exchange lean hog market will be closest to the similar changes in the US Department of Agriculture's reported price, until the USDA resumed publication, Smithfield said in the letter.
"This method will be effective by October 12, 2013, when we will assess whether this temporary pricing method will continue," the letter said . ". U. S.
The disruption of US Department of Agriculture (USDA) data this week has put the livestock market in trouble as Packers, producers and traders rely on daily slaughter, wholesale pork and beef prices to calculate livestock prices.
The reports and thousands of other market reports were suspended when the government closed.
Earlier this week, Smithfield said it was calculating cash hog prices based on the USDA market hog prices.
£ 30 per day as of October.
4, but if the closure continues, it will change its pricing method.
Cargill, America's third-largest airlineS.
The meat processing plant told producers in a letter on Friday that it will start using price data from private company Urner Barry on Monday to price live pigs.
Urner Barry is closely watched by livestock packers and traders for its meat prices and data.
Cargill said it cannot guarantee the accuracy of Urner Barry's numbers and is not responsible for any errors in them.
"Not sure when the government will be able to resume normal operations, including the release of a daily pig report," Cargill said in the letter . ".
"We continue to evaluate other methods of pricing pigs. ” Top U. S.
Meat Packers Tyson Foods told its hog supplier on Thursday it will use Urner Barry data for pricing starting Monday.
The closure raises the profile of companies like Urner Barry who sell data similar to what the government usually provides, and raises their subscriber list.
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