Source: Chris Scott, MEATINGPLACE, 5/18/16


The average U.S. spot chicken margin rose last week along with beef packer margins, but pork margins declined for a third straight week, according to BB&T Capital Markets analyst Brett Hundley.

Chicken margins rose to nearly 18 cents per pound from 17 cents the previous week. However, the increased chicken margin was far below the 25-cents-per-pound mark in the same period one year ago, Hundley reported. Pricing moved higher, while chicken feed costs were flat to up week to week. Chicken breast meat prices climbed last week but are down 21 percent compared with year-ago figures. Hundley estimated that chicken cutout is down 9 percent from last year.

Beef packer margins also rose last week with profitability closing in on $22 per head versus $13 per head in the previous week. Year-ago beef margins were $18 per head. Beef cutout prices and live cattle costs rose in the most recent week, with offal prices flat sequentially, he reported.

Pork margins were in decline last week, Hundley noted. The average was a profitable $6 per head versus a profit of $9 per head in the previous week. One year ago, pork margins were a negative $6 per head. Pork cutout prices were flat while pig costs for the week rose. Pork offal values were flat from week to week, he added.

For more stories, go to www.meatingplace.com.