U.S. Cattle & Hogs Production Update – Mar ’16
According to USDA, U.S. commercial red meat production totaled 3.90 billion pounds in Feb ’16, down 5.8% MOM but finishing 0.1% higher on a YOY basis when normalized for slaughter days. Total red meat production has increased on a YOY basis for six consecutive months through February however the MOM decline in production of 5.8% was larger than the ten year average January – February seasonal decline of 3.6%. ’15-’16 YTD U.S. red meat production is up 2.8% YOY throughout the first five months of the production season. Pork – Production Declines on a YOY Basis for the First Time in 14 Months Feb ’16 U.S. pork production of 2.00 billion pounds declined 6.1% MOM and 1.6% YOY when normalized for slaughter days. The YOY decline in pork production was the first experienced in the past 14 months. Feb ’16 total hogs slaughtered declined 0.6% YOY while average weight/head declined 0.7% YOY. ’14-’15 annual U.S. pork production finished up 4.6% YOY, which was a seven year high on a percentage basis. ’15-’16 YTD U.S. pork production remains up an additional 3.6% YOY throughout the first five months of the production season, despite the most recent YOY decline. Beef – Production Remains Higher on YOY Basis for Fourth Consecutive Month Feb ’16 U.S. beef production of 1.89 billion pounds declined 5.6% MOM but remained 1.6% higher on a YOY when normalized for slaughter days. U.S. beef production has increased on a YOY basis for four consecutive months through February. Feb ’16 average weights/head increased by 1.3% YOY while the total number of cattle slaughtered finished 0.9% above the previous year. ’14-’15 annual U.S. beef production finished down 4.7% YOY however ’15-’16 YTD U.S. beef production has gained back a portion of the losses, finishing 2.0% higher on a YOY basis through the first five months of the production season.