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Pork Cutout Value Sets Record

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