US pork prices continue to rise

 

 

In US wholesale markets during past week, pork prices kept rolling upward and hamburger ingredient values stayed very strong, according to reports.

 

The sudden US pork price upswing seems little short of amazing as cut-out value is up another 5 cents this week, to 82.4 cents/lb - making 10 cents rise in two weeks. Pork futures held firm in last week's range of 77.4-85 cents/lb, through to June delivery.

 

Hog producers and integrators are suddenly doing very well, with increased optimism about export demand from Asia, but also questions about whether export trade can keep absorbing such rapidly rising prices.

 

Meanwhile, prices for fed steers and for live cattle futures contracts topped out - while chicken values stayed steady to slightly easier with USDA 12-city index for whole birds is down 0.8 to 81.6 cents per pound. 

 

With supply still tight, lean processing beef prices again stayed strong this week, but evidence of strong hamburger sales through QSR sales outlets (Quick Service - Fastfood).

 

Daily national kills of cows and bulls continue steady in 24-26,000 range, but arrivals of imported lean cowbeef from Australia remain relatively sparse - with ex-dock price of 90CL frozen cowbeef still very strong around 177-78c/lb for April-May arrival.

 

The canner cow carcass cut-out value today is 130.2 cents/lb (up 2.2 cents from week-ago) but some cow packers are hinting at offers becoming a bit more readily available next week.

 

Supply tightness of fed steer beef was exacerbated by a very sharp drop in last Friday's national kill to 76,000 head of steers and heifers (compared with 101,000 head on Monday) which made wholesale prices stronger, but without emulating the pork momentum.

 

Packers have eased their fed cattle procurement quests, causing feedlot sale prices to ease below the magical 100 cents/lb live value that was touched in prior week. There was also some weakness in futures contract prices, as both feedlots and ranchers sought to lock-in recent high cash values.

 

Cattle futures for August are now down to 91.6 cents/lb (1.5 cents below week-ago level) and feeder calf futures are down 3 cents/lb from recent peaks (now 112-114 cents).

 

Meanwhile, the US Meat Export Federation (USMEF) released figures this week showing export trade was stronger during February for beef and pork, but subsequent rises in US wholesale prices may put brakes on a bit - even while creating profit margins on prior purchases by importers in Asian countries.