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Bottom Falls Out Of Meat Prices

Mike

Well-known member
Price of Meat at Lowest in 3 Years
From Reuters
May 2, 2006

CHICAGO — If spring warms the hearts of backyard barbecuers, they have another reason to rejoice: Meat prices are at their lowest levels in at least three years.

"There will be some very attractive prices for this grilling season. We already are seeing it on some major chicken, beef and pork items," said Jim Robb, an economist for the Livestock Marketing Information Center. "I think they will be pretty darn attractive through the balance of the year."

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On average, he said, retail beef and pork prices are at three-year lows, and chicken prices are the lowest in four years.

Particularly low priced are chicken leg quarters. A slowdown in exports has created a supply glut and led supermarkets to price them to sell — in some cases less than 20 cents a pound, Robb said.

U.S. meat sales increase in the spring and summer as the warm weather moves food preparation from kitchen stoves to backyard grills.

Government figures show that over the last 10 years U.S. per-capita meat consumption on average increased by 1.3 pounds in the second quarter from the first quarter, Robb said.

But what's good for shoppers is not so good for meatpackers. Two of the largest recently said the huge supply had damaged their bottom lines.

The nation's top pork producer, Smithfield Foods Inc., said Friday that its fourth-quarter earnings would be down sharply from the year-earlier period because the abundance of meat has hurt its hog and pork businesses.

On Monday, No. 1 U.S. meat producer Tyson Foods Inc. reported a $127-million loss for its second quarter ended April 1, blaming oversupply in its beef, chicken and pork operations in addition to plant closures.

Meat companies have blamed the large meat supply on the deadly bird flu overseas, which has blunted demand for U.S. poultry meat, and on the continued lockout of U.S. beef by some importing countries that are worried about mad cow disease.

Outbreaks of avian flu in Europe and Asia have cut chicken consumption and hurt U.S. exports of chicken, which normally account for about 15% of domestic production.

Japan and South Korea continue limits on U.S. beef because of the mad cow disease cases here. Before the bans, which started in late 2003, the two countries were leading buyers of U.S. beef.

Meat companies had expected those markets to be reopened by now. South Korea has said it hoped to start buying U.S. beef soon.

"There is too much meat. We are just producing too much of it," said Todd Duvick, a research analyst for Bank of America. "Avian flu is the contributing factor, but it is not the primary factor."

The U.S. Department of Agriculture forecasts that beef production will be up nearly 5.5% this year, pork production up 3% and chicken production up more than 2%. Combine those production increases with the large supplies of meat in U.S. warehouses and supplies should remain large, analysts said.

Domestic meat consumption has remained strong, but it is not at the level of a few years ago.

"The high-protein diet craze of the past couple of years has faded," said Rich Nelson, an analyst with the agriculture analysis firm Allendale Inc.
 
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Anonymous

Guest
Yep and about a year ago it was record high beef prices and Johanns made his infamous statement " have to do something to lower the beef prices" and they opened the Canadian border-- the rest is history.... :roll: :( :mad:
 

Mike

Well-known member
U.S. CATTLE INVENTORY JUMPS
UNITED STATES: USDA reports that the number of cattle being fed for slaughter on April 1, 2006 increased nine percent.

USDA’s National Agricultural Statistics Service (NASS) reported that cattle and calves on feed for slaughter market in the United States in feedlots with capacity of 1,000 or more head totaled 11.8 million head on April 1, 2006. NASS said the inventory was nine percent above April 1, 2005, and 10 percent above April 1, 2004.

“This is the highest April 1 inventory since the series began in 1996,” a NASS press release said.

The inventory included 7.74 million steers and steer calves--up 11 percent from the previous year. This group accounted for 66 percent of the total inventory. Heifers and heifer calves accounted for four million head--up five percent from 2005.

Placements in feedlots during March totaled 1.84 million head--five percent above 2005 and one percent above 2004. Net placements were 1.75 million head. During March, placements of cattle and calves weighing less than 600 pounds totaled 380,000 head; 600 to 699 pounds were 342,000 head; 700 to 799 pounds totaled 565,000 head; and 800 pounds and greater totaled 550,000 head.

Marketings of fed cattle during March totaled 1.96 million head--down slightly from 2005 and slightly below 2004. Other disappearance totaled 90,000 head during March, 32 percent above 2005 and 34 percent above 2004.

Web posted: April 25, 2006
Category: Marketing,Research
 

TimH

Well-known member
Oldtimer said:
Yep and about a year ago it was record high beef prices and Johanns made his infamous statement " have to do something to lower the beef prices" and they opened the Canadian border-- the rest is history.... :roll: :( :mad:

Hey Oldtimer, Do them thar "magic mushrooms" grow real good around your place??? :roll: :roll: :roll: :roll: :roll: :roll:

No???? Are you downwind from a meth lab maybe???? :D :D :D :D :wink:
 

agman

Well-known member
Oldtimer said:
Yep and about a year ago it was record high beef prices and Johanns made his infamous statement " have to do something to lower the beef prices" and they opened the Canadian border-- the rest is history.... :roll: :( :mad:

Beef prices peaked long before the Canadian border was reopened. How do you explain that since you associate lower prices to the resumption of trade. Don't you think your observation and conclusion is a bit flawed? Cow prices are lower and trade has not resumed-how could that be?
 
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Anonymous

Guest
agman said:
Oldtimer said:
Yep and about a year ago it was record high beef prices and Johanns made his infamous statement " have to do something to lower the beef prices" and they opened the Canadian border-- the rest is history.... :roll: :( :mad:

Beef prices peaked long before the Canadian border was reopened. How do you explain that since you associate lower prices to the resumption of trade. Don't you think your observation and conclusion is a bit flawed? Cow prices are lower and trade has not resumed-how could that be?

Australian imports were way up the beginning of this year- that cheap lean you love so much.....
 
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Anonymous

Guest
Manitoba_Rancher said:
OT-

I wish the sun would shine down at your place so you wouldnt have so much time to spend on here :)

Me too-- I'd just settle for this wind going down- Been as high as 57mph today--just a mild 40 now :roll:
 

Manitoba_Rancher

Well-known member
Just going to go ut and give some calves some fresh straw right now between rain showers because man its cold out there in that wind. Hard on calves this up and down weather, one day you have the a/c on and today its back to the heater :roll:
 

agman

Well-known member
Oldtimer said:
agman said:
Oldtimer said:
Yep and about a year ago it was record high beef prices and Johanns made his infamous statement " have to do something to lower the beef prices" and they opened the Canadian border-- the rest is history.... :roll: :( :mad:

Beef prices peaked long before the Canadian border was reopened. How do you explain that since you associate lower prices to the resumption of trade. Don't you think your observation and conclusion is a bit flawed? Cow prices are lower and trade has not resumed-how could that be?

Australian imports were way up the beginning of this year- that cheap lean you love so much.....

Imports are lower the last time I looked. Prices peaked in the October of 2003 for fed cattle. How many months was that before trade was resumed?

Yes, I do love that cheap lean beef. Perhaps some day you will realize how it benefits you.
 
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