Retail beef prices recorded record highs in June, according to an analysis from the Livestock Marketing Information Center.
According to USDA, all fresh aggregate retail prices reached $7.57 per pound, about 3 cents a pound higher than the previous record. Retail fresh beef prices are 3.1% higher than a year ago, says LMIC.
Conversely, retail pork prices came in at $4.68 per pound, about 5% lower than a year ago.
This comes in the face of a rising inflation figure. LMIC says the U.S. Bureau of Economic Analysis released the consumer price index (CPI) last week, which showed the index continued to move upward.
“Core inflation was listed at up 4.8%, while all items increased 3% over last year. The food index climbed 5.7% and is still persistently climbing,” LMIC said.
“The meat index, though, has seen on small gains year-over-year for the last couple of months and is only 0.6% higher than last year, compared to poultry (+1.6%) and dairy products (+2.7%). Headlines after the report release pinned shelter as one of the major culprits for continued increases to the CPI. Housing rose 6.3% over last year and made a large month-over-month jump as well.”
LMIC says many necessities continue to show large price hikes, including food.
“Food is among the most concerning, still up well over 5% from a year ago,” they said. “Retail meat prices appear strong for beef and chicken, but domestic pork demand still seems to be struggling. Adding to pork complications is the new Prop 12 law, which will likely increase the amount of pork on the domestic market outside of California.
LMIC added the comprehensive beef cutout fell for the second week in a row, a seasonal indicator that comes after July 4.
“Still, blended cutout values remain over $300 per hundredweight. Large declines were seen in the rib, and short plate primals, which are 4% and 3% lower, respectively than two weeks ago,” LMIC said “The round primal rebounded slightly last week but is also down about 3% from the previous two weeks. Load counts across all grades fell dramatically on the week of Fourth of July, down 24% from the previous week. Smaller load counts over a holiday week are typical, but this year was also 13% below last year.”
