April 21, 2008

US meat output up by 6 percent on-year

The USDA estimated total beef, pork and lamb production for last week at 960.3 million, increasing by 5.8 percent against last year's 893.6 million pounds.

US broiler/fryer slaughter this week was estimated at 166.706 million head, compared with 165.977 million a week ago and 159.610 million a year ago.

Wholesale boxed-beef prices soared last week, the USDA reports. The choice grade beef composite value gained US$7.74, while the select beef composite value increased US$6.66.

In the pork sector, cash hog values as well as wholesale pork markets posted significant gains despite the record large slaughter.

Strong export demand, seasonal buying interest in the domestic markets and expectations for hog supplies to gradually tighten into the summer fueled the market strength, analysts said.

The USDA reported the pork cutout Friday afternoon at US$67.50 per hundredweight, down US$0.20 from Thursday but up US$4.88 from a week ago. The cutout is up US$12.63, or 23 percent from April 1.

Cash hog prices gained US$7.52, or 13.2 percent, for the week based on USDA's national weighted average afternoon hog price quotes.