August 3

08/03 – Meat supplies are back. The USDA estimated that combined red meat and poultry output was 9.05B pounds in June, 8% higher than a year ago. Pork output led the way, up 13% in June, as processors tried to catch up with the backlog of hogs from April and May. Broiler eggs-set and chicks-placed are still running 1% behind last year, but the hatching flock has recovered to 3% above a year ago. Beef supplies are also rising while demand is seasonally declining. On the consumer side, habits are changing. Restaurant reopening setbacks have dealt another blow to foodservice protein usage. High jobless rates, and the end of the Fed’s $600/wk supplemental unemployment checks, will dampen retail demand - especially for beef middle meats. What it all means is that, except for a blip ahead of Labor Day, Q3 protein prices look to be relatively weak across the board.