Source: Chris Scott, MEATINGPLACE, 9/9/15


Processing margins for domestic pork and chicken fell somewhat last week from the previous week even as beef margins rose in the same period, according to the latest Weekly Commodity Monitor from Stephens Inc.

Pork
The average pork processing margin hit $13.29 per head for the week, down from $17.97 last week and off from the $18.96 per-head margin in the corresponding week one year ago, according to Stephens analyst Farha Aslam. Hog slaughter was up 22.1 percent compared with last year while pork production climbed 20.3 percent versus the same week in 2014.

U.S. pork exports were down 3.8 percent versus 2014 figures, with exports to Mexico, Hong Kong/China and South Korea all higher. These gains were offset by declines in exports to Japan and Canada, probably the result of a stronger U.S. dollar and competition in Japan from less expensive pork from European suppliers.

Chicken
The U.S. chicken margin was 8 cents per pound, 1 cent lower than the previous week and 7 cents below last year’s levels, according to the report. The chicken slaughter rate was up two-tenths of one percent from last year and pounds produced rose by 4.4 percent compared with the year-ago period.

Boneless skinless breast meat prices were off 7 cents from the previous week at $1.34 per pound and 24 percent below results one year ago. The Georgia Dock price was flat compared with last week at $1.15 per pound. U.S. broiler exports also were off by 20.6 percent in July versus the same month in 2014. Lower exports of broilers to Mexico, Angola, Taiwan and Cuba were factors in the decline, Aslam noted.  

Beef
Beef processing margins averaged $133.75 per head in the week ended Aug. 29, the report noted. The most recent figure is significantly higher than the $118.27 per head recorded in the previous week and nearly three times the $53.18 margin one year ago, Aslam reported.

U.S. beef exports in July were off by 9.7 percent versus a year ago, primarily because of lower exports to Japan, Mexico, Canada and Hong Kong/China. U.S. exports faced competition in Japan from less expensive beef from Australia  while a stronger U.S. dollar hurt exports to Mexico and increased inspections in China hampered growth in that nation. Exports to South Korea rose by 29.3 percent in the period, said Aslam.

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