Record Meat Prices Fuel Fresh Worries for Food Inflation
Justin Boshammer runs 2,000 head of cattle on his 15,000-acre Australian ranch. The herd has nearly tripled in just five years — part of an upturn across the world's No. 2 beef exporter — but it's far from sating global demand.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
Trump's Tariffs Just Blew Up the Farm Economy--Here's What Investors Need to Know
American farmers may still back President Donald Trump at the ballot box, but his tariff-heavy trade strategy is testing their financial resilience. New levies, layered atop existing ones, have pushed the average U.S. tariff rate to 15.2%its highest since World War II, according to Bloomberg Economics. The timing couldn't be worse. Crop prices for corn, soybeans, and wheat are at post-pandemic lows, and the cost of essentials like fertilizer and tractors is heading in the opposite direction. Mosaic says U.S.-bound shipments of phosphate and potash have dropped 20% year-over-year, while CF Industries (NYSE:CF) flagged incredibly low inventory and delayed imports that still need rebuilding. A North American fertilizer price index has surged 35% this year, driven by tight supply and geopolitical pressure. Warning! GuruFocus has detected 3 Warning Sign with OKLO. That strain is bleeding into the farm machinery sector. Tractor maker AGCO (NYSE:AGCO) confirmed it has already raised prices in North America and may adjust pricing in other regions as the tariff impact deepens. We will implement price increases where appropriate and feasible, said CEO Eric Hansotia. Meanwhile, demand-side stress is starting to show. U.S. soybean sales for the upcoming marketing year are at their lowest point in nearly two decades, with Chinathe biggest buyerstill absent. Bunge (NYSE:BG), a major crop trader, said customers are avoiding long-term contracts, sticking to very spot purchases instead. The company just posted its weakest second-quarter EPS since 2018. While President Trump insists farmers just need to bear with the plan, executives across the ag sector are sounding the alarm. Bert Frost of CF Industries highlighted that crop revenues aren't keeping up with soaring input costs, echoing broader concerns about farm economics in North America. Trump has doubled down on promises to support the rural base, saying on CNBC he's making sure farmers have the labor they need despite ongoing immigration crackdowns. But with fertilizer prices rising, crop buyers holding back, and uncertainty clouding the fall harvest, the costs of waiting could be stacking up faster than many can handle. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 minutes ago
- Yahoo
Wendy's Stock Sinks 39% YTD--Is This the Turnaround or a Warning Sign?
Wendy's (NASDAQ:WEN) just reset expectationsand not in a good way. The burger chain lowered its full-year global system-wide sales guidance to a drop of 3% to 5%, a noticeable step down from its earlier forecast of flat to down 2%. That shift came alongside a second-quarter same-store sales miss, with U.S. figures falling harder than expected and international growth underwhelming. Revenue managed to edge past estimates, and margins surprised to the upside, but the message was clear: the consumer wallet is tightening, and Wendy's is feeling the pressure. Warning! GuruFocus has detected 4 Warning Signs with WEN. Interim CEO Ken Cook didn't sugarcoat it. He told analysts the U.S. business still has "work to do" and flagged several lessons from the summer chiefly that pushing too many promotions at once diluted impact. App deals, $1 drinks, and even a Takis-branded meal failed to deliver sustainable bumps. July same-store sales fell between 5% and 6%, and Cook admitted the brand needs to focus better on fewer, higher-impact initiatives. When we have too many priorities, we have none, he said on the call a hard-learned insight that will shape the rest of the year. Wendy's isn't backing off the fight, though. It plans to sharpen its chicken lineup with new tenders, double down on cold brew beverages, and continue extending operating hours to target breakfast and late-night demand. It's also revisiting how restaurants are run leaning into better performance tracking and tighter franchisee coordination. Shares bounced nearly 2.5% at 11.36am today on the news, but with the stock still down 39% year-to-date, investors could be watching closely to see if this reset is the bottom or just another step down. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
38 minutes ago
- Yahoo
Trump's Tariffs Just Blew Up the Farm Economy--Here's What Investors Need to Know
American farmers may still back President Donald Trump at the ballot box, but his tariff-heavy trade strategy is testing their financial resilience. New levies, layered atop existing ones, have pushed the average U.S. tariff rate to 15.2%its highest since World War II, according to Bloomberg Economics. The timing couldn't be worse. Crop prices for corn, soybeans, and wheat are at post-pandemic lows, and the cost of essentials like fertilizer and tractors is heading in the opposite direction. Mosaic says U.S.-bound shipments of phosphate and potash have dropped 20% year-over-year, while CF Industries (NYSE:CF) flagged incredibly low inventory and delayed imports that still need rebuilding. A North American fertilizer price index has surged 35% this year, driven by tight supply and geopolitical pressure. Warning! GuruFocus has detected 3 Warning Sign with OKLO. That strain is bleeding into the farm machinery sector. Tractor maker AGCO (NYSE:AGCO) confirmed it has already raised prices in North America and may adjust pricing in other regions as the tariff impact deepens. We will implement price increases where appropriate and feasible, said CEO Eric Hansotia. Meanwhile, demand-side stress is starting to show. U.S. soybean sales for the upcoming marketing year are at their lowest point in nearly two decades, with Chinathe biggest buyerstill absent. Bunge (NYSE:BG), a major crop trader, said customers are avoiding long-term contracts, sticking to very spot purchases instead. The company just posted its weakest second-quarter EPS since 2018. While President Trump insists farmers just need to bear with the plan, executives across the ag sector are sounding the alarm. Bert Frost of CF Industries highlighted that crop revenues aren't keeping up with soaring input costs, echoing broader concerns about farm economics in North America. Trump has doubled down on promises to support the rural base, saying on CNBC he's making sure farmers have the labor they need despite ongoing immigration crackdowns. But with fertilizer prices rising, crop buyers holding back, and uncertainty clouding the fall harvest, the costs of waiting could be stacking up faster than many can handle. This article first appeared on GuruFocus. Sign in to access your portfolio
