Source: Chris Scott, MEATINGPLACE, 7/16/15


Beef and pork processing margins fell sharply last week while chicken margins stayed generally flat, according to the latest Weekly Commodity Monitor from Stephens Inc.

Beef
The U.S. beef processing margin averaged $45.05 per head last week versus $132.61 in the previous week and $61.74 in the corresponding one year ago, according to Stephens analyst Farha Aslam. Cattle slaughter was down 4.3 percent between 2015 and 2014, while beef production was down 3.4 percent from the year-ago period.

U.S. beef exports were lower during the week by 14.1 percent, with double-digit slowdowns in Japan, Mexico, Canada, Egypt and China. Softness in demand for U.S. beef in Japan and increased competition from cheap pork in Mexico contributed to the overall decline.

Pork
Pork margins fell to $5.79 per head last week compared with $11.41 last week and $10.65 in the same period one year ago, Aslam reported. Hog slaughter was up 11.7 percent versus last year while pork production was up 11 percent compared with the corresponding week one year ago.

U.S. pork exports were off 1.7 percent in May although declines in Mexico, Japan and Canada were partially offset by significant pork demand in China, South Korea and South America. U.S. pork exports to Hong Kong and China could move even higher In upcoming weeks because of higher hog prices in China over the last 14 straight weeks.

Chicken
The average chicken margin was 11 cents a pound last week, just one cent off compared with the previous week and five cents lower than the chicken margin results one year ago. Prices for boneless, skinless breast meat were flat versus the previous week. The Georgia Dock price was flat last week at one penny below the previous week at $1.15 per pound, bur still up 2.4 percent from year-ago results, Aslam reported.

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