A Pricey Ride to Labor Day

BEEF This beef market is pushing higher still. I’m still expecting a market correction after Labor Day, but man, getting to Labor Day is not going to be cheap. Beef harvest continues in the same quantities we’ve seen for months, 517K head last week, 509K the week prior keeps beef inventories tight. Ribeyes and tenderloins have been leading this charge higher, and I don’t see that changing. Strips are following higher but not near the increases in the rest of the middle meats. Rounds and chucks moving higher, thin meats moving higher, grinds moving higher. Did I hit all of them? With Tyson closing two beef plants and looking to sell another, beef capacity continues to shrink, reducing overhead for our new normal cattle harvest. I’d continue to stay ahead of your needs, but I do think once we get past Labor Day this market will turn. POULTRY Chicken continues of two minds. Demand is still strong, production continues to outpace last year, but we are slowing that growth a bit. Boneless skinless random breasts and party wings continue higher. On the other hand, tenders continue to decline next week and now represent a value compared to breast meat. I think we’ll see this pattern continue into September. On the avian flu report, no new cases this week, always good to hear. GRAINS International unrest continues to roil all the grain markets; corn closed at $4.85. About a month ago we were approaching $5/bushel, we may just get there this time. Soy closed up today over $12/bushel and wheat is moving higher as well. Nothing to make me think this bear market will change, but it is good to see some life in these markets. PORK Pork bellies topped out last week at $166 and today they closed at $154. I do expect there is a lot more downside to bellies. Buy just what you need, better pricing is ahead. Loins, butts, ribs, all with minimal movements, makes pork a great addition to your menu. DAIRY The CME was pretty quiet this week; through Thursday’s close barrel is up 1 while block is down 3 and butter is down 2. I’m seeing plenty of milk available, I don’t expect much movement into next month. Savalfoods.com | Find us on Social Media: Instagram, Facebook, YouTube, Twitter, LinkedIn