Pork Cutout Value Sets Record

August 11, 2008 — 

The remarkable run for U.S. meat and livestock prices continued last week with pork cutout values setting yet another weekly record and beef cutout values bouncing back a bit after three weeks and nearly $15/cwt of declines.

USDA's pork cutout value went above $90/cwt for the first time ever this week driven by continued strength for virtually every wholesale cut. In fact, USDA's composite primal values for butts and bellies bumped $1/lb. last week while the composite ham primal reached $0.88/lb. Those are remarkable values, especially this late in the summer -- beyond the time when the domestic market and tighter hog supplies usually conspire to create a seasonal high. Obviously, the prime suspect in this case is outstanding exports.

A side note on that topic: Our contacts indicate that the container shortage of last spring is no longer a factor of any degree.

Source:
Steve Meyer, Paragon Economics
Chicago Mercantile Exchange, Daily Livestock Report, August 8, 2008