Trilateral Protein Heat Map – First Week of August

Trilateral Protein Heat Map

Beef cutout values have been steady-firm and most items are trading at much higher levels year over year. Expectations are for the cutouts to continue higher as we get closer to Labor Day and the start of the school year. 

Pork exports from the U.S. to China and other Asian countries have been excellent, and that is expected to continue regardless of the political rhetoric and trade wars.

Whole birds and breastmeat were lower, but foodservice should step in and support breastmeat and tenders if/when prices drop much more.  Wings continue to outperform and dark meat has an underlying current of support from ASF demand. 

Look to buy beef tenderloins.  Although they are higher y/y, the difference (3.47%) is not nearly as much as almost all the other beef items and they are entering a bottoming period on the seasonality chart.