ENHANCEMENTS AND MARKET INSIGHTS
Glenn Eben, VP of Feed
The CFS Feed Team has been busy with numerous projects, capital improvements, maintenance, repairs, and rolling stock updates. We are completing concrete approaches and have purchased new equipment to enhance efficiency at the St. James Mill location. In Truman, we have completed repairs and updated the warehouse racking. In Freeborn, we have added new equipment, at the Hayfield Mill, we've introduced new equipment to improve working conditions and distribution. CFS recently held its biannual Feed Mill Manager Forum, a vital event for discussing new products and solutions. A key focus was the Smart Orders system, transitioning the ordering process from paper to digital. This system enhances data security and accuracy, allowing customers to enter orders directly, minimizing errors, and streamlining the process. This technology ensures efficient and accurate order management, benefiting our customers and CFS. Market Insights: Hog Market: The latest US quarterly hog and pig inventory report shows hog supplies above last year's levels despite a 2.2% decline in the breeding herd. Pigs per litter reached a record 11.72, about 1% above 2023 and 3.4% above a five-year average. Pork production is expected to be strong for the rest of the year and steady or slightly larger in 2025. Fed Cattle Market: The fed cattle market depends on beef performance and consumer demand. Cattle numbers are projected to stay below last year's levels through the end of the year, but heavier weights will keep beef production adequate for the holiday season. The market is expected to trend higher into late November and early December, supported by lower cattle supplies. Soybean Meal Contracts: This year presented challenges in securing soybean meal contracts due to a shortage of sellers. Soybean production plants were hesitant to offer basis contracts on unpurchased products. However, as the harvest progressed and yields became clearer, as sellers began offering basis contracts. There are opportunities for customers to purchase basis or cash contracts on soybean meal. These updates and insights reflect our dedication to enhancing facilities and operations, ensuring high-quality feed production, and adapting to market dynamics for the benefit of our customers.
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