U.S. Cattle & Hogs Production Update – Oct ’15
According to USDA, U.S. commercial red meat production totaled 4.14 billion pounds in Sep ’15, up 9.7% MOM on a daily average basis from the 3.90 billion pounds produced in Aug ’15 and up 4.6% YOY from the 3.96 billion pounds produced in Sep ’14. YOY production was driven higher by a continued increase in pork production, although beef production also finished higher on a YOY basis for the first time in 21 months. ’14-’15 annual U.S. red meat production finished up 0.3% YOY but 1.5% below the three year average red meat production. ’13-’14 annual U.S. red meat production finished down 2.8% YOY, which was the largest YOY annual percentage decline in ten years. Pork – Production Remains Significantly Higher on YOY Basis Sep ’15 U.S. pork production of 2.04 billion pounds finished up 7.9% MOM on a daily average basis and 8.7% YOY. Pork production has finished higher on a YOY basis for ten consecutive months, with total production up 7.4% in total over the period. Sep ’15 total hogs slaughtered increased 10.2% YOY, however average weights/head declined 1.1% YOY. ’14-’15 annual U.S. pork production finished up 5.2% YOY, which was a seven year high on a percentage basis. Beef – Production Increases YOY for the First Time in 21 Months Sep ’15 U.S. beef production of 2.09 billion pounds increased sharply, finishing up 11.4% MOM on a daily average basis and 0.8% YOY. Sep ’15 average weights/head increased 2.9% YOY while total cattle slaughtered remained 2.3% lower YOY. The YOY increase in beef production was the first experienced in the past 21 months. Despite the increase in production experienced during September, ’14-’15 annual U.S. beef production finished down 4.2% YOY. The decline was on top of a 4.7% annual decrease in production experienced during the ’13-’14 production season.