Profit Maximizer Reports
The Profit Maximizer is a biweekly report that provides insights and analysis on current pork markets.
Steiner and Company produces the National Pork Board newsletter based on information we believe is accurate and reliable. However neither NPB nor Steiner and Company warrants or guarantees the accuracy of or accepts any liability for the data, opinions or recommendations expressed.
Pork Demand in Q3 Remains Far Above Historical Levels
August 30, 2021
• Pork wholesale prices are expected to decline in the fall as supply increases. The big unknown is labor availability and the impact this has on the price spread of boneless and bone-in products. Already boneless hams are trading at a +3 multiple to bone-in product.
• The increase in slaughter and seasonal demand slowdown has resulted in lower prices for lean pork trim. However, due to limited trim operations, fat trim remains tight, at least in the near term, resulting in fat trim trading above lean. It’s easier to generate more lean by grinding cuts than fat.
• Pork belly prices have declined from record levels but remain high for this time of year. As slaughter picks trend higher in Sep/Oct, bellies should be cheaper.
• Loin prices have performed quite well thanks to high prices for competing products at retail. Seasonally, loin demand is good in Sep/Oct. Limited freezer stocks will also help.
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