By Philip Seng, president and CEO U.S. Meat Export Federation
The U.S. red meat industry has achieved outstanding export growth in recent years, enhancing profitability for all members of the supply chain. In 2014, both beef exports ($7.13 billion) and pork exports ($6.67 billion) shattered previous records for export value. Beef exports have steadily increased in value in each of the 11 years since global markets began to reopen after the first U.S. case of BSE. For pork, export value has increased in 15 of the past 20 years.
Choice boxed beef had a substantial increase on Thursday of $1.02 to hit $233.69. The jump brought the 27-day average price to $241.47. Select boxed beef prices also saw an increase from $229.14 on Wednesday to $229.30 on Thursday. The 16-cent raise brought the 27-day average price to $237.89.
Choice primal chuck saw the largest increase on Thursday of $2.95 to hit $195.79. Choice primal round was close behind with a $1.41 jump. Choice primal rib dropped a dollar to hit $320.14, bringing the 27-day average price to $336.38.
As crude oil prices and rig counts have fallen significantly since late 2014, changes in U.S. crude oil production statistics and trends have come into focus. EIA publishes several reports covering current crude oil production conditions and how recent trends may affect the near-term outlook for the oil industry (Figure 1). Each EIA product is distinct in its purpose, methodology, timeframe, and regional coverage. Some reports are estimates of actual production volumes, while others focus on future production.
Live catttle, feeder cattle and lean hog prices continue to see no change on Wednesday, still resting at $143.35, $208.75 and $28.28, respectively. Corn prices bounced back on Wednesday, jumping 20 cents to $3.93. Wheat prices saw no change.
Choice boxed beef dropped again Wednesday to $232.67. The 53-cent decline brought the 27-day average price to $242.20. Select boxed beef prices saw a 30-cent fall, bringing the 27-day average price to $238.58.
Choice primal rib saw the largest fall on Wednesday, dropping $3.41 to hit $321.14. Choice primal short plate was not far behind with a fall of $2.67. Choice primal loin was the only cut to not fall, increasing $3.64 on Wednesday.
Retail gas prices saw an average fall of six cents this week, with the average price in the United States sitting at $2.61. The 27-day average price now sits at $2.46.
The Midwest region saw the largest fall this week of nine cents to hit $2.57, bringing the 27-day average price to $2.43. Most regions saw a five-cent drop, including the New England, Central Atlantic and Gulf Coast regions. Only the Rocky Mountain region saw an increase this week of one cent.
Live cattle, feeder cattle and lean hog prices all saw no change from Monday to Tuesday this week, sitting at $143.35, $209.78 and $78.28, respectively.
Corn prices dropped 20 cents from $3.93 to $3.73. The 27-day average price is now at $4.05. Wheat fell as well from $5.12 to $5.03 from Monday to Tuesday. The 9-cent drop brought the 27-day average price to $5.54.