Tentative Good News for Beef

We are well into spring now and some things are shaking in the beef market.  First good news, though the strike is not settled, the JBS workers are returning to work while negotiations continue. Good news, beef harvest increased to 533K still running about 10% behind last year, supplies remain very tight.  Good news, market prices seem to be pushing back a bit, maybe this is moving higher too quickly? I still think this bull market will continue to move higher into spring, but I do think we’ve got a little breather for a week or so. Rounds and chucks are both down a bit this week, more good news. Middle meats are steady to slightly higher this week, but thin meats, those flanks, skirt, sirloin flat meat, all still expensive and moving higher.  Typically, thin meats will peak around Cinco de Mayo, which is not that far way.  POULTRY: Chicken production continues to outpace last year, up 2% so far this year.  Hatch rate is improving 79.3% - chicken is in full production.  Demand is right there with it, chicken, still a great value in protein, but pricing is moving higher.  Boneless skinless randoms breasts, tenders, party wings, all moving higher.  I think we’ll see this market move higher the next few weeks.  On Avian flu, a relatively good week with 3 new cases affecting 111K birds.  As spring migration tapers off let's hope the virus does too.  GRAINS : Corn barely moved from $4.54 to $4.53 this week.  Wheat about the same, soy is holding onto all their recent gains.  With the cost of fuel moving higher, demand for biofuels will increase, soy and canola continue to inch up on daily markets.  PORK: Last week bellies closed at $149, same this week, steady at $149.  I’m thinking we will continue in this $150 market for a few more weeks, next move should be higher, but I’m going to push that out a few weeks.  The rest of the pork complex is well supplied and priced well.  Butts inch up a penny, loins and ribs steady.   DAIRY Dairy markets holding pretty steady for  the week, Thru Thursday’s CME close block is down 2, barrel is steady, no change, and butter down 4.  Spring production is good and availability is very good.  Savalfoods.com | Find us on Social Media: Instagram, Facebook, YouTube, Twitter, LinkedIn