U.S. National Carlot Meat Trade Review

DES MOINES - Jul 2/09 - SNS -- The U.S. national market for carlot beef, pork, lamb and other meat products is covered in this latest release from the USDA.

National Carlot Meat Trade Review
Week Ending:  Thursday, July 2, 2009

CARCASS PRICE EQUIVALENT INDEX VALUES
   The carcass price equivalent index value of a Choice 600-900 lbs carcass
was down 0.47 at 126.43; Select 600-900 lbs carcass up 0.01 at 119.98 compared
to last Friday.

FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE
   Boxed beef cutout values were generally steady to weak on light to moderate
demand and offerings. Chuck items weakened in price this week as some packers
unloaded some excess product, most noticeably in chuck rolls. Round items
remained relatively steady with last week.  Both Loin and Rib primals were
lower on Choice but higher on Select, which served to narrow the spread
between the two. Forward sales activity was slow this week with only moderate
volumes of brisket and blended ground beef being traded.  There was some
movement seen in cap and wedge meat at prices consistent with the spot market.
Beef trimmings were lower on light to moderate demand and offerings, with most
trading seen later in the week.  This was a surprise for most, since
expectations were that prices on trimmings would start to increase.  Fed
cattle grinds trended steady to firm on light to moderate demand and
offerings, while blended grind pricing was steady to weak.
   For the week:  Choice loin and rib primal was 2.00 to 5.00 lower while
moving 1.00 to 2.00 higher on Select; Select and Choice chuck primal steady to
1.50 lower; Select and Choice round primal generally steady; Beef trimmings
1.50 to 2.00 lower; Fed cattle grinds 2.00 to 3.00 higher while blended cattle
grinds 2.00 to 3.00 lower.
   Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses down 1.04
at 137.89; Select 600/900# carcasses up 0.14 at 132.44.

COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT
   Lean boneless processing beef prices were higher this week on light to
moderate offerings. Trading was slow early in the week but activity became
moderate as buyers entered the marketplace and bought product to meet their
short term needs ahead of the holiday. Early week market activity on imported
beef was slow to moderate with price levels mostly firm to 1.00 higher
compared to last week. Limited supplies, higher domestic prices and improved
demand ahead of the July 4th holiday supported prices. Cow cuts traded mixed.
Chuck, round and rib cuts were mixed while loin cuts were mostly higher. 100%
lean combo items mostly firm to 1.00 higher.
   Lean boneless beef 92-94% mostly 1.00 to 3.00 higher; 90% 2.00 to 3.00
higher; 85% 1.00 higher; 81% mostly 1.00 higher; 75% mostly 1.00 to 2.00
higher; 65%  unevenly steady; Other lean percentages not fully established.
100% lean combo items were mostly firm to 1.00 higher with the exception of
inside round which was 1.00 lower.  Cutter cow carcass gross cutout value for
Thursday, July 02, 2009 was estimated at 112.02 per cwt, up 2.51 when compared
to last Friday.

CARLOT PORK AND PORK CARCASS CUTOUT VALUE
   Any glimmer of hope for higher dollar values on retail cuts went by the
wayside as almost all buyers had their needs covered by early week. Prices
deteriorated daily for the major retail primals as offerings outweighed
demand. Trading for processor cuts was very light this week as demand remained
extremely light. At the same time, offerings were mostly moderate but
remarkably price levels held on the few trades which did trade as most trading
was completed early due to the shortened holiday week. Lean trimmings
experienced moderate offerings and very light demand as sausage manufacturers
bought on an as needed basis. Additionally, price levels for lean trim are
currently 50% less than one year ago which is another indication of the
competition by competing proteins for the consumer’s dollar.
   Fresh bone-in loins 1.00-4.00 lower; butts 9.00 lower; spareribs 10.00-
23.00 lower; skinned hams 17-20 lbs 1.00 lower; 20-23 lbs steady; 23-27 lbs
steady; seedless bellies 14-16 1.00 lower; 42% trimmings 2.00 higher; 72%
trimmings 2.00 higher; boneless 2.00 higher from last quote.
   The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at
$55. per cwt. dn 0.28 from last Friday.

BY-PRODUCTS:  VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES
   Trading was nonexistent with no trades reported this week.  The poor
economic conditions are keeping buyers on the sidelines.  Any interest at all
was at much lower prices than sellers were willing to accept.
   Trading on pork variety meats was very slow early in this holiday shortened
week.  Export interest from Hong Kong emerged mid week and multiple loads of
neck bones, front and hind feet were sold for export at higher prices.
Domestic markets were thinly tested at steady to lower prices as the poor
economy keeps weighing on the markets.
   Market activity on tallows and greases was slow throughout this holiday
shortened week.  Good chemical demand for moderate offerings prompted higher
prices on Chicago packer and renderer tallow.  Chicago edible tallow also
finished higher.  Refiner demand was moderate for mostly light offerings.
Central choice white and yellow grease closed lower as they were kicked out of
some feed formulations.  The export markets were quiet.
   Protein feed supplements experienced slow trading this week.  Buyers were
on the sidelines early waiting for the USDA Acreage report and the CBOT
reaction.  With the current price levels, buyers seem to be covering immediate
needs.  Central meat and bone meal finished mostly steady to weak in an
unsettled market.  Panhandle ruminant and pork ended steady to lower.  Demand
was light for light to moderate offerings.  Pork blood meal also ended lower
on light demand.
   Trading on major packer hides was very slow with no trading reported.
Packers and tanners were content in their positions.
   Beef variety meats: no trades reported.
   Pork variety meats: domestic neck bones mostly steady to 4.00 higher; tails
mostly steady ; domestic front feet steady,  export front feet .50-3.00
higher; export hind feet 21.00 higher; domestic multi slashed hearts 4.00
lower than last established market; cheek meat 3.00 lower than last
established market; salivary glands 1.00 lower; domestic stomachs generally
steady.
   Central choice white grease .50-1.25 lower; Central yellow grease 2.00
lower; Chicago packer bleachable tallow 0.75 higher; Chicago renderer
bleachable tallow 0.75 higher; Chicago edible tallow 0.50 higher; Central meat
and bone meal mostly steady to weak; Panhandle meat and bone meal steady to
7.00 lower; pork meat and bone meal steady to 10.00 lower; pork blood meal
25.00 lower.
  The average value of hide and offal for the four days ending July 2, 2009
was estimated at 7.20 per cwt., down 0.03 from last week and down 4.57 from
last year.

NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS
   The special fed veal carcass weighted average composite price was 0.72
lower on moderate offerings and a light to moderate demand.  Harvest numbers
compared to last week were nearly unchanged.  Dressed weights were down 1.8
pounds in the Northeast, down 2.4 pounds in the North Central area, with the
composite down 2.3 pounds compared to last week.
   Special fed veal cut prices were unevenly steady, with an increase seen in
some retail cuts. Demand light on light to moderate offerings. Movement slow.

LAMB: CARCASS & PELTS
   Carcass lambs sales for the week, as of 7/02/2009 were lower, 65#'s and
down trended weak to sharply lower; 65-85#'s trended 2.98-3.97 lower; 85#'s
and up trended 0.83 lower.
   Packer sorted green salted pelts steady. Trading nearly inactive.  Most
activity was seen in higher quality pelts, with infrequent movement on lower
quality pelts.  Foreign market activity remains sluggish.

Source:   USDA Market News, Des Moines, IA

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