May 28, 2007

 

US wholesale beef and pork prices down before holiday

 

 

Wholesale beef prices fell sharply this week as buying interest from grocers and food-service operations slowed just ahead of the Memorial Day holiday.

 

The US Department of Agriculture's midday report Friday (May 25) showed choice beef prices at US$158.05 per hundredweight, down US$7.90, or 4.8 percent, for the week. The select beef cutout value at midday was at US$147.94, off US$6.14, or 4 percent, for the week.

 

Market analysts and meat brokers said the premium priced beef rib and loin cuts were pressured the most this week after running up to high levels a week ago. The wholesale price at midday Friday for the USDA choice ribs was US$224.13 per hundredweight, down US$19.06 from last week's high of US$243.19. The choice loin quote at midday was US$257.67, off US$15.42 from the high of last week.

 

This week's cattle slaughter remained large, estimated at 696,000 head and even with a year ago. Market analysts said profitable processing margins, sales made earlier for the Memorial Day holiday period, and the plants being closed on Monday encouraged packers to push the hefty number of cattle through their plants this week.

 

Wholesale pork prices also slipped some this week but not as much as beef. The USDA's pork carcass composite value, commonly known as the pork cutout, on Friday afternoon was reported at US$76.29, down US$1.63 for the week.

 

Analysts predict softer prices for some pork cuts early next week as the market corrects itself from the heavier buying activity seen earlier in the month for Memorial Day holiday features.

 

CATTLE/HOG SLAUGHTERS

 

US cattle slaughter for the year to date stands at 13.304 million head, up 2.4 percent from a year ago.

 

The USDA estimated this week's hog slaughter at 1.98 million head, compared with 1.952 million a week ago and 1.926 million a year ago. The year-to-date total is 42.253 million head, up 1.8 percent from a year ago.

 

TOTAL MEAT PRODUCTION

 

The USDA estimated total beef, pork and lamb production for the week at 925.7 million pounds, slightly eclipsing last week's figure of 924.2 million pounds. The output a year ago was 923 million pounds. Year-to-date combined meat output is 18.812 billion pounds, up 1.4 percent from last year.

 

Broiler/fryer slaughter for the week was estimated at 166.284 million head, compared with 164.484 million a week ago and 171.120 million a year ago.