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 Saturday, October 11, 2008
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NW_LS850
Des Moines, Iowa Friday, October 10, 2008 USDA Market News
National Carlot Meat Trade Review
Week Ending: Thursday, October 09, 2008
CARCASS PRICE EQUIVALENT INDEX VALUES
The carcass price equivalent index value of a Choice 600-900 lbs carcass dn
2.48 at 139.85; Select 600-900 lbs carcass dn 2.62 at 132.99 compared to last
Friday.
FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE
Boxed beef cutout values were lower for the third week in a row, on
moderate to heavy offerings. Demand improved this week as packers eased
prices to generate a more active trade. Choice ribs ended the week lower,
only after a considerable appreciation at the beginning of the week as some
retailers began negotiating for holiday procurement. Select ribs showed
modest appreciation this week with all reported cuts moving higher. End meats
remain under pressure with packers taking lower bids to ease inventories.
After a month of downward pressure, the loin complex stabilized as Choice
loins in particular were generally steady. Beef trimmings were steady to weak
for the session on light to moderate demand and moderate offerings. Fed cattle
and blended grinds weak on moderate demand and moderate to heavy offerings.
For the week: Choice rib primal 3.50 lower while Select rib primal 2.00
higher; Choice and Select chuck primal 3.50 to 5.50 lower; Choice and Select
round primal 2.50 to 4.00 lower; Choice and Select loin primal steady to 1.00
lower; Beef trimmings 1.50 lower; Fed cattle and blended grinds mostly 1.00-
4.00 lower.
Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses down 2.25
at 150.17; Select 600/900# carcasses down 2.70 at 143.89.
COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT
Lean boneless beef prices continue to tumble lower as demand for lean
boneless processing beef was sharply lower again this week. Packer inventory
levels became burdensome with harvest levels maintaining near capacity levels.
Grinding operations have been purchasing product on an as needed basis due to
the light seasonal demand, although packers are anticipating demand to
increase within the next few weeks. Market activity on import boneless beef
remains nearly inactive as end users opt for the more economically priced
domestic lean boneless beef. Prices paid for imported beef were sharply lower
and prices continue their course of trending lower. Prices for lean boneless
beef past the reporting window are also trending lower than the spot market.
Cow cuts were sharply lower again this week as product inventories have
increased with the larger harvest levels. 100% lean items also traded sharply
lower again with combos of flats and eyes having the largest decline.
Lean boneless beef 92-94% steady to 6.00 lower; 90% 5.00 to 8.00 lower; 85%
steady to 11.00 lower; 81% not established; 75% 2.00 to 4.00 lower; 73%
sharply lower; 65% 3.00 to 7.00 lower. 100% lean combo items traded mostly
4.00 to 12.00 lower with flats and eye combos sharply lower. Cutter cow
carcass gross cut out value for Thursday, October 09, 2008 was estimated at
122.88 per cwt, dn 3.78 when compared to last Friday.
CARLOT PORK AND PORK CARCASS CUTOUT VALUE
Surplus inventories carried over from the last session coupled with a large
harvest this week pressured prices sharply lower while causing the cutout to
dip 2.58 mid week which is the second largest single day deficit this year.
The last time was August 26, 2008 which was 3.93. Prices for retail pork cuts
continue to be under pressure with many buyers reluctant to procure additional
loads as their inventories were more than adequate. Minimal price declines
occurred through the loin, butt and sparerib complexes. Packers decided it was
time to move their excess ham supply as price levels began to deteriorate in
an effort to keep product moving through the pipeline. Seedless bellies faced
the same challenges however a two-tiered market prevailed most of the week
before finally settling lower. Lean trim suffered from the same dilemma as
buyers stepped in and procure product at a steady pace once price levels
reached a comfortable level.
Fresh loins steady to 1.00 lower; butts 2.00-3.00 lower; spareribs 3.00
lower; skinned hams 17-20 lbs 8.00-9.00 lower, 20-23 lbs 7.00 lower, 23-27 lbs
9.00-12.00 lower; seedless bellies 14-16 lbs 1.00-8.00 lower; 42% trimmings
3.00-4.00 lower; 72% trimmings 6.00 lower; boneless picnics 5.00-7.00 lower.
The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at
$68.83 per cwt. dn 4.04 from last Friday.
BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES
Trading on beef variety meats was very slow this week. On sausage
materials markets, cheek meat went untested on resistance to current price
levels. Head meat and hearts declined on light demand for moderate offerings.
Diminished demand for product going export to Russia brought on by the global
financial conditions pressured those markets. In addition, buyers are buying
for immediate needs only anticipating lower prices going forward.
Trading on pork variety meat markets was mostly slow to moderate again this
week. Prices trended steady to lower again this week on light demand for
light to mostly moderate offerings. Sausage materials markets were very
lightly tested again this week. Domestic multi slashed hearts gained while
the export product declined. Cheek meat declined as well on light processor
demand. Export demand was at lower price levels due to the heavy inventories
overseas. This pressured feet and kidney prices.
Tallows and greases experienced slow trading this week. Light chemical
demand and mounting supplies pressured prices lower on Chicago renderer
bleachable tallow. Edible tallow and lard also finished lower. Demand was
light for light to moderate offerings. Central choice white grease and yellow
grease closed lower. With the biodiesel buyers out of the market, light feed
fat demand and heavy supplies pressured the market. The Gulf markets were
quiet.
Trading on protein feed supplements was slow to moderate this week.
Ruminant and pork meat and bone meal prices fell as packers and renderers
scrambled to stay competitive with soybean meal. Demand was light for
moderate offerings. Panhandle and pork blood meal prices ended lower on
mostly light demand for moderate offerings.
Major packer hides experienced slow trading this week. Demand and
offerings were light. Packers were holding firm in their offers while tanners
continued to resist. In a light test, Heavy Native Steers traded at steady
prices.
Beef variety meats: domestic and export cheek meat not tested; head meat
mostly 10.00 to 23.00 lower; domestic hearts 5.00 lower, export steady.
Pork variety meats: neck bones and tails steady; domestic feet generally
steady, export .50-2.50 lower; domestic multi slashed hearts 2.00 higher,
export 2.00 lower; cheek meat 1.00-11.00 lower; small box stomachs steady-
4.00 lower; kidneys 3.25 lower; partial lean snouts 8.00 lower than last
established market.
Central choice white grease 4.00-4.25 lower; Central yellow grease 6.00
lower; Chicago renderer bleachable tallow <0.15 3.00 lower; Central meat and
bone meal 10.00-70.00 lower; Panhandle meat and bone meal 30.00-57.00 lower;
pork meat and bone meal 46.00-50.00 lower; Panhandle blood meal 50.00-55.00
lower; Pork blood meal 75.00-100.00 lower; Heavy Native Steer hides steady.
The average value of hide and offal for the four days ending October 9, 2008
was estimated at 11.20 per cwt., down 0.29 from last week and up 1.23 from
last year.
NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS
The special fed veal carcass weighted average composite price decreased
$1.89 on light to moderate demand and moderate offerings. Harvest numbers
increased nearly 1% last week. Dressed weights were up 1.2 pounds in the
Northeast and up 5.8 pounds in the North Central area, with the composite up
3.9 pounds.
Special fed veal cuts traded generally steady again this week. Demand was
light to moderate for moderate offerings.
LAMB: CARCASS & PELTS
Carcass lambs sales for the week, as of 10/09/2008 were lower with 55#?s
and down sharply lower; 55-65#?s 1.69 lower; 65-85#?s 0.47 to 1.00 lower;
85#?s and up 1.62 lower.
Packer sorted green salted pelts steady. Demand and offerings moderate.
The larger pelts are finding best interest and prices. Pelts from most areas
reported very clean this year.
Source: USDA Market News, Des Moines, IA
515-284-4460
11:00c lmc
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