Des Moines, Iowa - Friday, May 09, 2008 - USDA Market News
National Carlot Meat Trade Review
Week Ending: Thursday, May 08, 2008
CARCASS PRICE EQUIVALENT INDEX VALUES
The carcass price equivalent index value of a Choice 600-900 lbs carcass up
0.96 at 141.76; Select 600-900 lbs carcass up 0.40 at 138.16 compared to last
Friday.
FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE
Boxed beef cutout values were generally steady for the week. Demand was
light beginning the session, but did pick up by mid-week, particularly on
Choice product. Despite significant forward business done the last few weeks,
packers inventories have accumulated for numerous items due to the subpar
trading activity on the spot market during the same period. As a result price
ranges varied more this session on common items than usual. Pricing trends
generally followed seasonal patterns with end meats steady to weak, while
middles were steady to firm. Forward activity this session was average with a
significant volume of briskets from both grades priced comparable to the spot
market. Beef trimmings were sharply higher with offerings limited after last
weeks active trade. Fed cattle grinds trended steady to weak on light to
moderate demand and moderate offerings, while blended grinds were generally
steady on moderate demand and offerings.
For the week: Choice and Select rib primal 4.00 higher; Choice and Select
chuck primal 1.00 to 2.00 lower; Choice and Select round primal 1.00 to 2.00
lower; Choice and Select loin primal 1.00 to 2.00 higher; Beef trimmings 10.00
higher; Fed cattle grinds mostly steady to 2.00 lower, while blended grinds
generally steady.
Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 0.72 at
155.18; Select 600/900# carcasses dn 0.35 at 152.10.
COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT
Cow and Bull livestock prices in the Midwest and Southern areas traded 1.00
to 4.00 higher this week in response to the higher to sharply higher boneless
beef market. Grinders and sausage makers this week were again aggressively
searching for product to fill the higher than normal seasonal production
demand. End user demand was moderate to very good for the light to moderate
offerings. Imported bull and cow meat were steady to firm on light offerings
and moderate demand. Import beef offerings are still less than sufficient to
meet grinder demand. Import prices, fueled by the weak U.S. dollar, higher
prices paid for domestic lean and the availability of imported beef are
trading at record levels. Grinding operations continue to look for
alternative options to offset the higher priced import beef market. Cow cut
prices were unevenly steady on end meats. Middle meats continued to trend
mostly firm to higher on a continuing good demand for the upcoming Memorial
Day weekend. Prices on 100% lean items were mostly higher on good demand and
moderate offerings.
Lean boneless beef 92-94% 4.00 to 7.00 higher; 90% 8.00 higher; 85% 4.00 to
6.00 higher; 81% 1.50 to 6.00 higher; 75% unevenly steady to mostly 1.00
higher; 73% unevenly steady to mostly 4.00 higher; 65% 2.50 to 4.00 higher.
100% lean items 2.00 to 4.00 higher except for eye of rounds trading sharply
lower and striploins 1.00 lower. Cutter cow carcass gross cut out value for
Thursday, May 8, 2008 was estimated at 127.57 per cwt, up 4.95 compared to
last Friday.
CARLOT PORK AND PORK CARCASS CUTOUT VALUE
The beat goes on for retail pork cuts as prices continued to climb higher
for almost all cuts again this week. Early week saw buyers reenter the market
to cover their needs for features that were running or going to appear in the
next couple of weeks, but found limited supplies available. These two
phenomena combined to cause the trading level ascension to be sustained. Hams
rallied this week as decreased harvest numbers tightened supplies. Prices for
seedless bellies were also firm as slicers bought product on the open market
rather than begin to draw down frozen supplies. Offerings for lean trim
continued to be light while demand began to build, pushing prices higher.
Fresh loins firm to 9.00 higher; butts 2.00-9.00 lower; spareribs 12.00-
15.00 higher; skinned hams 17-20 lbs not tested, 20-23 lb 1.00 lower, 23-27
lbs 5.00 higher; seedless bellies 14-16 lbs 6.00 higher; 72% trimmings 4.00
higher; boneless picnics not tested.
The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at
$78.71 per cwt. up 3.52 from last Friday.
BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES
Trading on beef variety meats was mostly slow to moderate this week on
sausage materials markets but nearly nonexistent on other markets. Cheek
meat, head meat, and hearts finished steady to mostly higher on moderate to
good demand for light offerings. On other markets, export tripe declined
modestly in a very thin test.
Trading on pork variety meats was very slow this week. Harvest numbers
were running slightly less than last week. This only added to the already
tight supplies of many items. Markets were lightly tested and trended steady
to higher in most cases. On sausage materials markets, cheek meat and hearts
made price gains on good demand from traders and processors. Supplies were
limited on both items. Exporters continue to struggle to find containers for
shipping already bought product and are hesitant in making additional
purchases.
Tallows and greases experienced slow trading this week. Light chemical and
biofuel demand drove prices lower on Chicago packer tallow, renderer tallow
and choice white grease. In a light test, Chicago edible tallow finished
steady. Central choice white grease prices drifted lower following the trend
of the Chicago market. Feed fat demand was light to moderate for moderate
offerings. Central yellow grease ended steady.
Trading on protein feed supplements was moderate this week. Continued
light feed demand and increased cattle slaughters pressured ruminant meat and
bone meal prices again this week. Central and Panhandle prices finished
lower. Pork meat and bone meal also saw light demand, however, reduced hog
slaughters helped the supply side. Prices ended steady to lower. Light
demand and moderate supplies resulted in sharply lower prices on Central blood
meal. In a light test, pork blood meal finished steady.
Major packer hides experienced slow trading. Demand and offerings were
light. Tanners think prices should be lower, but packers dont. The standoff
continued. Most selections went untested. In a light test, Colorado Branded
Steers traded at higher prices.
Beef variety meats: domestic cheek meat steady; export cheek meat 3.00
higher; head meat generally steady; domestic hearts 4.00 higher, export 3.00-
8.00 higher; export tripe 3.00 lower.
Pork variety meats: neck bones 1.00 higher; 30# full cut brisket bones 9.00
lower; tails 4.00 higher; pet treat ears steady; domestic feet 1.00 higher,
export 1.00 lower; domestic multi slashed hearts 1.00 higher; cheek meat
steady to 3.00 higher; mask snouts .50 higher; domestic small box stomachs
3.00 lower; kidneys .50 higher than the last established market.
Central choice white grease down .75-1.00; Central yellow grease steady;
Chicago packer bleachable tallow <0.15 .50 lower; Chicago renderer bleachable
tallow <0.15 .50 lower; Central meat and bone meal 10.00-15.00 lower;
Panhandle meat and bone meal 5.00-10.00 lower; pork meat and bone meal steady
to 10.00 lower; Central blood meal 100.00 lower; pork blood meal steady;
Colorado Branded Steer hides 3.00 per piece higher.
The average value of hide and offal for the four days ending May 08, 2008
was estimated at 10.65 per cwt., down 0.13 from last week and up 0.52 from
last year.
NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS
Special fed veal carcass composite price average declined 3.18 on light to
moderate demand and moderate to heavy offerings. Harvest numbers declined
again last week. Dressed weights down 6/10th of a pound and 4 pounds lower
than last year.
Prices on veal cuts this week were steady to lower with movement very slow.
Demand remained light to moderate for moderate to heavy offerings.
LAMB: CARCASS & PELTS
Carcass lambs for the week, as of 5/08/2008 were mixed; 55#s and down
traded sharply lower on a very light demand; 55-75#s traded 1.60 to 2.02
higher; 75#s and up traded 0.25 to 0.49 higher.
Packer sorted green salted pelts were steady last week.
Source: USDA Market News, Des Moines, IA
515-284-4460
10:00c lmc
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