Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 8/24/10

USDA reported record pork carcass cut out values on Monday at $95.67 per hundredweight, breaking the record set on Friday at $95.49 as tight supplies and strong demand continue to collide.

Both days beat the previous record of $94.41 set in August 2008 when China was hosting the Olympics and buying U.S. pork to feed foreign visitors.

Strong seasonal bacon demand and low pork belly stocks have been part of the equation. Pork belly cut out values stood at $145.60 on Monday.

Analysts continue to warn the prices won’t last. Hog supplies typically grow in the fall at the same time the consumers’ summer cravings for bacon-lettuce-tomato sandwiches wane.

Still, tight pork stocks continue. USDA’s monthly Cold Storage report last Friday showed frozen pork supplies on July 31 were down 28 percent from last year and down 5 percent from a month ago. Pork belly stocks were down 64 percent from last year and down 38 percent from last month.

Hormel Chairman, President and CEO Jeffrey Ettinger told Meatingplace last week he expects the current high margins could linger through the end of this quarter and into early next year.

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