Episode Details

DAIRY Last week the block market went off, jumping up $.19/# by the CME close on Friday. This week, not letting up with the block up $.20/# through Thursday’s close. Now the barrel is joining block, up $.19/# with today’s close while butter is up a respectable $.04/#. When markets rocket up like this, they usually stall pretty quickly, so while we do have to deal with these big increases, I think it will be done fairly soon. Demand for export and tightening inventories are what is pushing this market right now. 

BEEF Beef harvest last week was 553K head, up from the prior week of 535K. This week, we're finally seeing these prices pause and actually a couple things moving lower, which is a welcome change. Middle meats, led by ribeyes, tenderloins, and strip loins, are all pausing their walk higher every week, even down a few pennies.  Thin meats, think briskets, flank, and sirloin flap, still have a bit more room to decline, I think. Rounds and chucks seem to be settled for now. Grinds are steady as well, but I do think we could see grinds picking up steam as we head into November. We will have a third entry point for cattle from Mexico scheduled to open next week with a fourth expected in about a month. That is all good news for available cattle. Inventories continue to be tight, so stay ahead of your needs and take the declines when you are ready. 

POULTRY The big news this week in poultry is the Avian Flu tally for the last week.  Six new cases were reported, affecting about 1 million egg laying chickens. Cooler weather and wild bird migration are factors for increased Avian Flu cases. Looking at fresh chicken, demand for boneless skinless random breasts is pushing prices lower; wings and tenders are holding steady, but I do think we could see continued softness in chicken pricing. Chicken producers have been pushing production higher, and it might just have finally caught up with them. 

GRAINS Corn continued to decline; today’s close was $4.65, down from last week’s $4.79. Soy and wheat are falling in behind the corn with similar declines.  With a big corn and soy crop in harvest, moving inventory becomes more important than the price. Biofuels will continue to play an important role in keeping grains moving. 

PORK Pork pricing is soft, demand is soft, making a great opportunity to present great values. Today’s belly close of $84.59 is just up from last week’s close of $83.33; we're still well under $100 which makes bellies - and bacon - a great buy.  Butts, loins, and ribs are all holding steady for the next week; pork is a great protein value. 

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