PoultryUSA - September 2017 - 9
The years with significant upside from $335 December
meal onto August-October were years where the weather
scare developed into real weather issues and soybean
yields below trend (2010, 2007 and 2012).
The net of the analysis provides expectations for fall
prices. A crop issue puts $375 in play, but only occurs 25
percent of the years where the market rallies into July.
Assuming weather issues subside, $280 December meal is
very likely. ■
Matt Beeson is founder and CEO of Beeson and
Associates, a consulting firm that provides commodities risk
management solutions based on price trends - working
with commodity purchasing teams across the food
manufacturing, foodservice, dairy and livestock industries.
Are high wing
costs really the
BY ROY GRABER
When Buffalo Wild Wings revealed that its net earnings during the second quarter of fiscal year 2017 declined by nearly
63 percent, the company's CEO, Sally J. Smith, said one key
reason for that decline was high chicken wing prices.
While wing prices are admittedly at a high point, one
has to wonder if there is more to the story.
When Wingstop, another publicly-traded restaurant
chain that specializes in chicken wing sales released its
earnings about one week later, the situation was a little
different. In Wingstop's earnings press release, CEO
Charlie Morrison did acknowledge that wing prices were
higher than expected, but the company still managed to
attain higher net income, revenues and sales.
September 2017 ❙ www.WATTAgNet.com