Beef - Beef output last week increased 1.9% but was 2.8% less than the same week in ‘11. US cattle prices are down sharply from record high levels set in March. Spring cattle supplies, although limited, are modestly better than expected plus weights are up versus ‘11. This has tempered this spring’s beef rally and suggests that the ‘12 USDA boxed beef cutout price high has been established. Since ‘09, choice top butt, 0x1 strip and 50% beef trimming prices faded over the next 7 weeks. The Australian dollar continues to weaken versus the US dollar. This is a promising sign for 90% lean boneless beef trimming imports.

Pork- Pork production last week decreased 1.1% but was 4.9% larger than the same week a year ago. US pork output rates this year have outpaced solid pork export sales. Domestic demand for pork has been disappointing. Most of the pork markets have weakened this spring but have shown recent signs of strengthening. Seasonal pressure and better retail feature activity are anticipated to bring support to the pork markets in the coming weeks. Last year pork spare rib prices increased 17% during the next 7 weeks.

Poultry - Elevated feed costs remain a major factor behind chicken producer’s poor margins. In response chicken output continues to be curbed which could further support the chicken markets going forward. The ARA chicken breast index recently priced at its highest level since October ‘10. In ‘09, a similar year to ‘12 with reduced production, chicken breast prices rose 8% from now into July. For chicken leg quarter prices it was 20% during that same time period. However, this year’s average bird weight is heavier which is tempering the chicken supply short fall slightly. Chicken wing prices are trying to stabilized after declining from record high levels in February. Still, chicken wing prices are 42% above the 3 year price average.