Pork and Beef Prices

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Dr of BBQ
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2010/05/07 09:47:18 (permalink)

Pork and Beef Prices

My suppliers are telling me to expect a 30% increase in both pork and beef prices very soon. I just payed $1.39 per lb for two cases of pork shoulders yesterday. That compared to $0.98 per lb a month ago.

And add to that the 40% shrinkage when you smoke shoulders and you have Pulled Pork costing me almost $2.78 per lb.


I'm thinking it's the ethanol thing, corn is being used to produce fuel and farmers can't afford to feed their animals without an increase in prices.  Which will eventually cause all prices to escalate.

Sucks.
#1

10 Replies Related Threads

    BillyB
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    Re:Pork and Beef Prices 2010/05/07 09:56:15 (permalink)
    Shortage of beef, I paid .95lb for my Black Angus calves last year, this year they are 1.10. I bought them lighter and will keep them on pasture longer. I agree, the cattle are getting better prices at the beef houses, so it will get down to us soon.
     we are finishing one of these feeder pigs now and the other two will be breeders.......Bill
    post edited by BillyB - 2010/05/07 10:01:53
    #2
    Curbside Grill
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    Re:Pork and Beef Prices 2010/05/07 10:23:07 (permalink)
    Corn prices will affect everyone in some form. Economist and farmers for 2 years now have put out reports
    that we could plant every square inch of the U.S. and never have enough.   Better ways to make ethanol and other fuels. Water- 100 miles a cupful.

    I purchased a whole shoulder/ picnic  $1.48/lb. yesterday

    #3
    chefbuba
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    Re:Pork and Beef Prices 2010/05/07 11:06:35 (permalink)
    Paid $1.38 for pork shoulder,  $1.87 for angus choice top round, down from $2.20 last week.
     
    And the corn thing I don't get... I have a customer that's a farmer, says he usualy plants 375 acres of corn, this year, no where to sell it so he's putting in some sort of grass/hay that will be exported to Japan along with 80% of the crop that is grown in this valley.
    #4
    lornaschinske
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    Re:Pork and Beef Prices 2010/05/07 16:47:44 (permalink)
    It's the middle men and the stock market (futures) speculators that mess up the prices.  It's no longer a simple market based supply and demand, it's the "perceived" supply and the "perceived" demand.
    #5
    MilwFoodlovers
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    Re:Pork and Beef Prices 2010/05/07 17:08:43 (permalink)
    It frosts my you know what that in our economy fortunes are made and lost all on paper and not by blood, sweat and tears. Just witness yesterday's roller coaster on the stock market caused by a typo and things in Greece. WTF?
    #6
    Dr of BBQ
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    Re:Pork and Beef Prices 2010/05/07 22:12:30 (permalink)
    lornaschinske, You’re correct on oil prices but that’s not the topic.

    That said the American public was sold a bill of goods on the Ethanol thing, with a promise that it would help make us less dependent on foreign oil. And that it would keep oil prices down.

    There was no mention that it would force a jump in corn and other grain prices, not to mention that we could plant the entire country in corn and still not replace or make a good dent in the need for foreign oil.

    And no one bothered to tell the American public that it cost more to produce a gallon of Ethanol than it sells for. LMAO

    We are the greatest country in the world but sometimes the American public as a whole are fast to bite the bait when offered.

    And this time we got caught like large carp.

    Jack
    #7
    Relentless
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    Re:Pork and Beef Prices 2010/05/08 05:47:36 (permalink)
    Pork in general has been going up for the last month or so...my cost on butts has increased from .93¢ to $1.25 in the last month...and like you say, going up. If that trend continues, it won't be long before I will have to increase prices.
    #8
    localnet
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    Re:Pork and Beef Prices 2010/05/08 06:19:52 (permalink)
    Here is the chart for June Live Cattle...

    http://futuresource.quote...s/charts.jsp?s=LC%20M0

    And here are the June Piggies...

    http://futuresource.quote...s/charts.jsp?s=LH%20M0

    We had a "thinning" of the herds this past winter due to the cold weather and the fuel/feed costs eating into profits along with very weak markets due to the economy. The Hog markets were hit extremely hard especially for the smaller mom and pop producers.

    But if you look at the charts they are getting top heavy and hopefully we will see some relief soon. Allot will depend on the dollar and foreign markets in the short run, and then we have all of the coming energy issues that more than likely will come out of DC, which will either give us some relief or drive prices higher, I am looking for the latter. I think one could say we live in interesting times.

    As far as Corn, we are swimming in the stuff due to the mild weather of last year. We had a bit of mold which drove prices higher over the winter months as the harvest was late in many areas due to the wet weather and not being able to get the combines into the fields. The mold problem showed up this year, but was quickly factored in and than out of the markets.

    Here is the chart...

    http://futuresource.quote...ts/charts.jsp?s=C%20K0

    You can see the weather and mold issues in the chart starting in Oct 09 and ending this Feb 10.

    Mike
    post edited by localnet - 2010/05/08 06:27:06
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    localnet
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    Re:Pork and Beef Prices 2010/05/08 06:48:43 (permalink)
    Relentless

    Pork in general has been going up for the last month or so...my cost on butts has increased from .93¢ to $1.25 in the last month...and like you say, going up. If that trend continues, it won't be long before I will have to increase prices.


    Check this site out...  http://www.cattlenetwork.com/

    I think it will give you better idea of what we are looking at. Right now Cattle and Hogs are very top heavy price wise. We may see a crash in the next week or two. We have done very good with Cattle and Hogs over the past few months, normally short selling open contracts, right now we are short with options as the market is to volatile. To short means that we are betting that the price goes down, hey I gotta eat too.

    Mike

    On edit: I think I would raise my prices. If the cattle and hog markets crash, I think it will only be temporary as there are more problems coming our way in regards to the currency and energy markets. And do not forget this coming January we will be hit with one of the largest business tax increases in world history. This will have to be factored into the coming months production. The actual farmer in the field may not be able to sell his livestock at today's prices, but the distributors will pass the coming tax costs onto us. I would look for a steady increase in meat prices over the next month or two and then hopefully things will settle down at least until January of 2011, then look for another spike as the new taxes hit the distribution chain.
    post edited by localnet - 2010/05/08 07:04:54
    #10
    Relentless
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    Re:Pork and Beef Prices 2010/05/11 01:09:17 (permalink)
    FWIW...bought a couple cases of butts today (Excel) and paid $1.21¢  Down a little bit from last week.
    #11
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