August 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 the ongoing cattle shortage, there remains adequate supply to meet current demand. However, with packers facing negative margins, slaughter levels may be reduced in the fall months to counteract high raw material costs.

Cattle carcass weights continue to be at record levels which has helped to offset the reduced supply. 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 remains high primarily due to the lack of lean trim in the marketplace.
Ribeye pricing has increased as we approach the Labor Day weekend and will continue to rise leading up to the holidays.
Striploin pricing has finally come off historically high levels and will be decreasing significantly over the next month.
Chuck flat pricing will be steady for August but will be decreasing significantly in September due to Asian export markets showing softness on higher priced U.S. exports with Australia filling in with lower priced product.
Chuck Roll pricing has settled at lower levels 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, which have been steady during the summer, are poised to increase as we approach the colder fall months.

With the ongoing cattle shortage and higher beef prices, we should expect volatility as consumer demand will ultimately shape future pricing.

Poultry

All chicken parts continue to remain in well sold positions due to strong and consistent demand at the retail level. 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 Bone-In Thighs continues to be limited as retailers continue to feature poultry heavily for their ad features.
Boneless Skinless Thighs – Boneless Skinless Thighs were steady albeit at elevated levels but have started to increase again as retailers have stepped in for their end of summer ad features.
Leg Meat – Chicken leg meat pricing has increased primarily due to high thigh meat prices. Typically, when thigh meat prices increase to a certain level, processors pivot to lower priced leg meat.
Breast Meat – Breast meat prices have remained strong with retailers continuing to feature this in their ads.
Wings – Wing demand remains unseasonably strong and will continue to find support with football season upon us.
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

Pork continues to be the most stable protein in terms of pricing and supply. Despite increased pork demand during the summer, there remains a more than adequate inventory of hogs in the supply chain.

With Prop 12 price increases, pork demand in California is significantly down from previous years.

Butts – Boneless butt prices continue to show softness despite export bookings to overseas Asian markets.
Back Ribs – Rib prices have started to decrease as we approach the end of summer and retailers adjust their fall ad features.
Bellies – Belly prices have started to show weakness as foodservice bacon promotions has been considerably less than in past years.

Pork Outlook – Similar to poultry, pork presents value to consumers as retailers feature pork more prominently in their ads.