The July Consumer Price Index by the Bureau of Labor Statistics said the All-Items CPI was 2.9% higher than a year ago, said the Livestock Marketing Information Center’s Livestock Monitor.
This was the first time the inflation rate has been less than 3% since March 2021 when it was 2.6%, the LMIC said. In July, the Food CPI was 2.2% more than last year, which was in line with the monthly year-over-year changes since the start of the year.
The Meat CPI was up 3.1% in July, which was slightly higher than the 2.0% gain seen a year ago, the LMIC said. In July, the Poultry CPI was up 0.9%, which was similar to prior months.
RETAIL BEEF PRICES RISING
Over the last several months, the all-fresh retail beef price has remained in the upper-$7.00 per pound range and finally reached above the $8 per pound mark in July to $8.15 a pound, a record.
Ground beef was $5.50 a pound in July, a record and 8% higher than last year, the LMIC said.
Prices for chucks and roasts also reached record levels in July, the LMIC said. The chuck was up about 7% in July to $7.78 a pound, while roast was up almost 8% to $7.12 a pound.
The round was $8.06 per pound in July, an increase of 5% from a year ago, the LMIC said. Sirloin steaks increased 2% to a record price of $11.73 a pound in July.
RETAIL PORK PRICES ALSO UP
The July retail pork price was $4.92 A pound, an increase of 4.6% from a year ago, the LMIC said. Bacon was $6.88 per pound, an increase of 10% from last year.
The retail price for pork chops continued to hold in the mid-$4.00 per pound range, a trend that has been in place for several months, the LMIC said. Ham prices saw some strength recently with prices in the mid- to-upper $4.00 per pound range.
CHICKEN PRICES DECLINED
The retail composite chicken price was $2.42 per pound in July, a decrease of 3.6% from last year, the LMIC said. Over the last year, the retail composite chicken price ranged from about $2.40 to $2.50 a pound.
Leg prices (bone-in) were $1.79 a pound, down 11.8% from a year ago, and breast prices fell 4.7% to $3.95 per pound in July, the LMIC said.
The whole bird retail price was $1.99 per pound in July, up 5.1% from last year and only slightly less than the record price of $2.01 per pound set two months earlier in May.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $183.00 per cwt to $186.22, compared with last week’s range of $185.00 to $196.79 per cwt. FOB dressed steers, and heifers went for $289.28 per cwt to $296.44, compared with $292.43 to $300.38.
The USDA choice cutout Thursday was up $1.37 per cwt at $308.66 while select was down $1.44 at $296.19. The choice/select spread widened to $12.47 from $9.66 with 149 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $376.70 per cwt, and 50% beef was $144.66.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.48 to $1.58 a bushel over the Sep corn contract, which settled at $3.71 3/4 a bushel, up $0.06 1/2.
No live cattle contracts were tendered for delivery Thursday.
The CME Feeder Cattle Index for the seven days ended Tuesday was $242.64 per cwt, up $0.01. This compares with Wednesday’s Aug contract settlement of $243.55, down $0.65, and the Sep settlement of $241.30, down $0.62.