October 1, 2007

 

US cattle prices move up in latest week; hogs drop again

 

 

US fed cattle prices this week were up mostly US$2 per hundredweight on a live basis and US$3 dressed from a week ago while hog prices fell sharply.

 

Lighter offerings of cattle from the feedyards with about 6 percent fewer cattle on feed as of September 1 helped push prices up. Wholesale beef prices also were higher, but not up significantly from the previous week.

 

Market analysts said large supplies and declining prices of the competitive meats pork and chicken are limiting how much more grocers are willing to pay for beef in the near-term.

 

As of midday Friday, the US Department of Agriculture's choice beef price was quoted at US$146.64, down US$0.76 from Thursday's (September 27) close but still up US$1.57 for the week. Select prices at midday were off US$0.41 from Thursday and up US$1.67 from last Friday afternoon.

 

Cash hog prices fell sharply this week, with an average daily decline of about US$1.10 on a dressed basis. A third consecutive week with federally inspected hog slaughter above 2.2 million head weighed on the cash market and wholesale pork values.

 

The USDA's pork cutout value reported Thursday afternoon was at US$61.20, the lowest since mid-April 2006. The 2006 low of $55.59 and the lowest since December 30, 2003, serves as a strong support level for the cutout.

 

CATTLE/HOG SLAUGHTERS

 

US cattle slaughter for the week was estimated at 654,000 head, compared with 645,000 a week ago and 636,000 a year ago. Year-to-date slaughter stands at 25.289 million head, up 1.3 percent from a year ago.

 

The week's hog slaughter was pegged at 2.223 million head, down slightly from the week-ago figure of 2.242 million but up 3.9 percent from 2.140 million a year ago.

 

Year-to-date hog slaughter is estimated at 78.013 million head, up 2.5 percent from a year ago.

 

TOTAL MEAT PRODUCTION

 

The USDA estimated total beef, pork and lamb production for the week at 960.4 million pounds. Last week's output was 955.4 million pounds. The year-ago figure also was 930.2 million. Year-to-date combined meat output is 35.305 billion pounds, up 1.4 percent from last year.

 

Broiler/fryer slaughter for the week was estimated at 172.358 million head, compared with 170.377 million a week ago and 164.748 million a year ago.