July 12, 2023

USDA reports increase in pork cutout value, beef cutout value declines

The United States Department of Agriculture (USDA) has revealed that the pork cutout value rose by 6% compared to the previous week, while the beef cutout value has seen a slight decline in the past two weeks, Supermarket Perimeter reported.

The pork cutout value reached its highest level since September 2022. The beef cutout value’s decline comes after reaching its highest levels since the COVID-19 pandemic induced record highs in 2020.

In its recent Hogs and Pigs report published on June 29, the USDA indicated minor changes in the US swine inventory on June 1 compared to the same period last year. However, the numbers slightly exceeded trade expectations.

The report suggests that swine slaughter and pork production may remain similar to last year's levels over the next few months but could decline later in 2023 and into 2024. This projection is due to a 4% drop in farrowing intentions for the June-November period.

According to the USDA's Livestock Slaughter report, total red meat and pork production reached a record high in May. Overall red meat outturn increased by 2.4% compared to May 2022, with pork production up by 4.1% and beef production up by 0.7%. The rise in hog slaughter offset the lighter average live weight.

Additionally, the USDA's Cold Storage report reveals that total frozen red meat stocks on May 31 were down 11% from the previous year. Specifically, beef stocks decreased by 20% and pork stocks decreased by 3.7%. In contrast, total frozen poultry stocks increased by 9% from May 31, 2022, with chicken stocks up by 10% and turkey stocks up by 6%.

In its Cattle on Feed report, the USDA disclosed that the number of cattle in feedlots of 1,000 head or more on June 1 decreased by 2.9% compared to the same period last year. However, cattle sold for slaughter in May saw a 1.7% increase, while cattle placed in feedlots experienced a 4.6% increase.

-      Supermarket Perimeter