July 2024 Market Update

Your monthly update on the state of the pork, poultry, beef, and seafood industries, direct from your Y. Hata category specialists.

Please contact your Account Manager for questions.

Beef

Despite higher prices, beef demand has remained strong, and supply is expected to tighten as we approach the holidays. Cattle carcass weights are at record levels and have helped to offset the reduced supply.

Beef packers continue to face negative margins as cattle raw material costs remain high. With cattle being kept on feed longer, grading continues to be predominantly choice, premium, and prime. Availability for lower grades such as select remains limited.

Ground beef and patty pricing have been on the rise primarily due to the lack of lean trim in the marketplace.
Ribeye pricing has softened momentarily now that we are past the Fourth of July holiday but is expected to strengthen as we approach Labor Day and the holidays.
Striploin pricing remains at elevated levels but is expected to decrease more significantly over the next month.
Chuck flat pricing will be decreasing this month due to continued pressure on the chuck complex as well as persistent softness in international Asian export markets with devalued currencies.
Chuck Roll pricing has decreased as retailers have shifted to middle meats for their summer ad features.
Sliced beef short rib pricing continues to increase due to limited availability of raw material.
Oxtail prices remain steady and have not decreased primarily due to the limited cattle supply.

With the ongoing cattle shortage and higher beef prices, consumer demand will ultimately shape future pricing.

Poultry

All chicken parts remain in a well sold position due to strong and consistent demand. Overall prices have settled at elevated levels and continue to be supported by strong retail demand.

HPAI bird flu remains an ongoing area of concern for producers, but there remains an adequate supply to fill current demand.

Bone-In Thighs – Availability for BI Thighs continues to be limited as retailers feature poultry for their ad features.
Boneless Skinless Thighs –Thighs continues to be one of the more sought-after chicken parts with prices settling at elevated levels reflective of this strength in the marketplace.
Leg Meat – Chicken leg meat remains in high demand but is starting to show signs of softness.
Breast Meat – Breastmeat prices have remained strong with retailers continuing to feature this in their ads.
Wings – Wing demand is unseasonably strong with limited availability as national chains promote wings on their menus.
Turkey – Turkey prices are stable for now, but the uptick in HPAI bird flu cases could lead to a reduced supply in the future.

Poultry Outlook – With high beef prices, poultry remains the preeminent protein of choice for value conscious consumers dealing with inflation.

Pork

Of the major proteins, pork remains the most stable in terms of pricing and supply. Despite increased pork demand as we enter the summer months, there remains a more than adequate inventory of hogs in the supply chain.

Butts – Boneless butt prices have been decreasing slightly despite recent export bookings to both Korea and Hong Kong.
Back Ribs – Rib prices remain strong as retailers secure inventory for future ads as people look to gather for backyard BBQs.
Bellies – Belly prices remain at elevated levels and continue to support the pork cutout.