November 5, 2007

 

US wholesale pork, choice beef prices hit nearly 19-month lows

 

 

US wholesale pork and choice beef prices slid to nearly 19-month lows last week while select beef hit a 10-month low.

 

The US Department of Agriculture's choice beef price Friday (November 1) fell US$0.97 per hundredweight to US$137.98, the lowest since April 6, 2006. The pork cutout value on Wednesday was US$57.19, the lowest since April 10, 2006. Pork prices rallied slightly Thursday then slipped US$0.06 Friday to end the week at US$57.31.

 

Choice beef prices for the week fell US$3.57, or 2.5 percent. Select's decline was more modest at US$1.70, or 1.3 percent. Pork prices slid US$1.94, about 3.3 percent, for the week.

 

Slowed demand at the wholesale level for fresh meats ahead of the Thanksgiving holiday coupled with large production of total meats and poultry are weighing on meat prices, said analysts and meat brokers. Combined red meat production has topped 1.0 billion pounds in four of the last five weeks.

 

This week's hog slaughter was the fifth consecutive above 2.3 million head. Preliminary data show October's federally inspected hog slaughter at 10.573 million head. This was the first time monthly slaughter has ever exceeded 10.0 million.

 

Market analysts, brokers and meat wholesalers said large supplies and lower prices of pork and chicken are slowing sales of beef at the retail counters. Cash-strapped shoppers are trying to stretch their food dollars so are purchasing more of the cheaper cuts.

 

CATTLE/HOG SLAUGHTERS

 

US cattle slaughter for the week was estimated at 671,000 head, compared with 674,000 a week ago and 654,000 a year ago. Year-to-date slaughter stands at 28.610 million head, up 1.5 percent from a year ago.

 

Hog slaughter for the week is estimated at 2.322 million head, compared with 2.324 million last week and 2.187 million a year earlier. Year-to-date hog slaughter is estimated at 89.693 million head, up 3.1% from a year ago.

 

TOTAL MEAT PRODUCTION

 

The USDA estimated total beef, pork and lamb production for the week at 1.004 billion pounds. Last week's output was 1.006 billion, and the year-ago figure was 958.2 million. Year-to-date combined meat output is 40.326 billion pounds, up 2.0 percent from last year.

 

Broiler/fryer slaughter for the week was estimated at 168.638 million head, compared with 167.574 million a week ago and 164.098 million a year ago.