Meat Market Update | Unsold inventory piles up

When you combine the lack of sales along with the increased cattle numbers, we can assume that there probably was a lot of product that was not sold.

In the past eight weeks during the tremendous price rally, the four-week moving average of box beef sales has dropped significantly below last year. It had been way over last year most of the spring, but during the past eight weeks the total sales were actually 4,000 loads below last year. At the same time, the estimated FIS cattle harvest increased about 176,000 head over last year. When you combine the lack of sales along with the increased cattle numbers, you can assume that there probably was a lot of product that was not sold. Also, working inventories of product at packing plants are not measured in Cold Storage report. The Cold Storage report normally reflects about 90 =% of stored boneless trimming items that are destined for grinding or manufactured products and 10% or less of actual beef cuts.

TAGS: Marketing
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