Chicken is the New Beef

BEEF The beef market is continuing lower this week though I do see some slowing in the declines. Production continues restrained with 525K harvested last week, down from 529k the week prior. We may see even lower production numbers this week and moving into August to try and bolster some of price drops. Middle meats continue to lead the way lower, mainly the strip loin; tenders and ribeyes both lower but not by much. Grinds moved lower a second week, that I am surprised to see. Chucks and rounds are mostly trading sideways with some lower prices but mostly just treading water. Thin meats have more to go but finally are moving lower which was really needed. Overall, the market is soft even with tight inventories. Buy to stay ahead of your needs but no need to stretch too far out.  POULTRY I’ve been talking all year how chicken production is up, and they don’t seem to be holding back, expecting to replace beef on the consumer's table. While demand for wings is pushing pricing up again next week, boneless skinless randoms and tenders are holding steady again for next week. While I do think the next move should be higher, I don’t think it will be more than a few cents up right now. On the avian flu beat, first time in weeks, no new cases reported. GRAINS International unrest and spikes in oil prices come right into our food sector pushing all our grains higher, even corn. Corn closed at $4.84/bushel up from last week $4.67, soybeans up closing at $12.26 over last week’s $11.95 and wheat closed at $6.83 up from $6.69. We have the inventory to meet demand; pricing will be pushing higher every day. PORK Pork bellies closed today at $156 up from last week $147. I don’t think this is done at all. Expect to peak sometime in August. Butts, loins, and ribs all moving slightly lower making pork a very attractive protein buy.  DAIRY At the close of today’s CME, block is up 5, barrel is up 3 and butter heads lower another week, down 5. Not sure how long this run up will continue but I don’t expect too much longer. Savalfoods.com | Find us on Social Media: Instagram, Facebook, YouTube, Twitter, LinkedIn