The pork cutout value slipped below $100 per cwt for the last few weeks but remains about $17 to $19 per cwt more than where prices were last year, said the Livestock Marketing Information Center in its Livestock Monitor.
MID-APRIL PEAK
In mid-April, the pork cutout value peaked at just over $100 for two straight weeks, the highest so far for 2024, the LMIC said. At this time last year, the pork cutout value was just hitting $80 per cwt, and the five-year average for early May is $92 per cwt.
The pork cutout value seasonally peaks in June or July, but the strength in the pork cutout is a positive signal that the demand for pork has strengthened, the LMIC said.
LOINS, BUTTS AND PICNICS
Primal values for the loin, butt and picnic have been trending upward since the start of the year, the LMIC said. The loin primal value topped $100 per cwt last week, up $20 per cwt, or 24%, from the start of the year and $19 per cwt, or 23%, higher than the same week a year ago.
Last year the loin primal value hit $100 for only two weeks in mid-July, so the loin primal value is tracking ahead of the trends seen last year, the LMIC said. Last week’s butt primal value was $130 per cwt, up $26 per cwt, or 25%, from January and $12 per cwt, or 10%, higher than last year.
If the butt primal value follows a similar trend to last year, its value could go higher, considering the butt primal value spiked to $165 per cwt in late June 2023, the LMIC said.
The picnic primal value has been moving counter-seasonally higher for the last few weeks with the most recent value at $81 per cwt, up $16 per cwt, or 25%, from last year and $7 per cwt, or 9%, higher than the start of the year.
HAM PRIMAL VALUES MIXED
The ham primal value has fluctuated since the start of the year but generally is trending higher with last week’s value at $82 per cwt, up $5 per cwt, or 7%, from last year, the LMIC said.
Rib and belly primal values have been indicating a weaker tone over the last several weeks, the LMIC said. Last week’s rib value was $165 per cwt, down 6% from the recent peak of $175 per cwt in mid-March.
The belly primal value was $117 per cwt last week, 18% lower than the recent peak of $143 per cwt in early February, the LMIC said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $184.00 per cwt to $194.17, compared with last week’s range of $184.00 to $189.52 per cwt. FOB dressed steers, and heifers went for $289.67 per cwt to $295.90, compared with $289.94 to $295.35.
The USDA choice cutout Wednesday was down $0.85 per cwt at $312.17 while select was down $1.26 at $299.61. The choice/select spread widened to $12.56 from $12.15 with 108 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $350.03 per cwt, and 50% beef was $72.02.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.38 to $1.50 a bushel over the Jul corn contract, which settled at $4.61 1/4 a bushel, up $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Tuesday was $248.44 per cwt, up $0.69. This compares with Wednesday’s May contract settlement of $250.37, up $1.42.