U.S. National Carlot Meat Trade Review

DES MOINES - Apr 23/04 - 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, April 22, 2004
CARCASS PRICE EQUIVALENT INDEX VALUES
   The carcass price equivalent index values of a Choice 600-900 lbs
carcass down 2.93 at 143.30; 600-750 lbs carcass down 3.24 at 142.68;
750-900 lbs down 2.82 at 144.04; Select 600-900 lbs carcass down 4.33
at 125.12; 600-750 lbs down 4.38 at 125.00; Select 1-3 down 4.45 at
125.20 compared to last Friday.
FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE
   Boxed beef cutout values were lower on light to moderate
demand and moderate offerings.  Most of the drop on cutout values
could be attributed to sharply lower beef 50 trimmings.  When
reduced slaughter levels abruptly force trimmings higher, the
resumption of normal harvest rates often brings trimmings back
down just as quickly.  That was the case this week as the
normalization of slaughter levels brought 50s nearly 40 dollars
below last week’s average.  Rib and loin cuts traded steady to
firm, round cuts were steady to weak, while chuck items and
briskets were under the most pressure in trading lower.  While
the Choice/Select spread increased somewhat, a surprising fact
was this was driven by end meats rather than middles.  Forward
business was light with the exception of heavy movement on choice
clods.  Overall bookings this week remained modest with many
buyers retaining a short bought position in hopes of expanding
live cattle supplies as well as the Canadian border opening to
cattle imports.  Fed cattle and blended grinds were higher as
these products become increasingly attractive feature
alternatives to historically high beef cuts.
   For the week:  Choice and Select rib primal generally steady;
Choice and Select chuck primal 4.00 to 5.00 lower; Choice and
Select round primal steady to 2.00 lower; Choice and Select loin
primal 2.00 to 4.00 higher; Beef trimmings 37.00 lower; Fed
cattle and blended grinds mostly 3.00 to 6.00 higher.
   Composite of Boxed Beef Cutout Values: Choice 600/900
carcasses dn 2.70 at 160.27; Select 600/900 carcasses dn 3.12 at
141.03.
COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT
   Lean slaughter cow numbers across the country continued to be light,
as packers reported plenty supplies available on the fleshier grades.
Thus, causing offerings on lean boneless beef to be light, resulting in
higher prices.  However, as the week progressed and market activity
became slow, offerings began to mound causing prices to trend weak to
lower late in the week.  The lower lean percentage items traded lower,
especially the 65% beef trimmings which followed the trend of the 50%
beef trimmings and moved at sharply lower prices on moderate demand for
heavy offerings.  Import boneless prices on bull and cow meat were
steady in slow to moderate market activity on mostly light offerings.
General trend on cow cuts prices were firm to mostly higher, with
exception to 100% lean S.P.B., outside round and flat/eyes weak to
lower on moderate to good demand and light to moderate offerings.
   Lean boneless beef 90% mostly 3.00 higher; 85% 1.00 to 5.00 higher,
mostly 5.00 higher; 81% not fully established; 75% weak to lower on
light test; 73% not fully established; 65% sharply lower, mostly 14.00
lower; 100% lean items Inside round, eye of rounds and striploins firm
to higher, outside rounds, and Flats/Eyes weak to lower and S.P.B.
weak.  The Cutter cow carcass gross cut out value for Thursday, April
16, 2004 was estimated at 111.45 per cwt., up 1.09 from a week ago
Friday.
CARLOT PORK AND PORK CARCASS CUTOUT VALUE
   A reverse price trend for retail pork cuts was seen this week as
trading levels depreciated. Many of the features that had included pork
were about over and demand lagged most of the week while supplies built
to force the prices lower. Increased demand for bone-in hams caused
prices to advance in spite of mostly moderate offerings. Processors
bought early before price levels appreciated in an effort to stay ahead
of the advancement, along with that, increased export demand caused
domestic ham buyers to compete for the limited available supplies.
Seedless belly prices rebounded this week due to reduced inventories
and increased demand for sliced bacon which pushed prices sharply
higher. Lean trimmings remained generally steady throughout the week
while demand and offerings were light to moderate.
   Fresh loins 5.00-7.00 lower; Boston butts 3.00-5.00 lower; spareribs
generally steady; skinned hams 17-20 lbs. 7.00 higher, 20-23 lbs. 5.00
higher, 23-27 lbs. 4.00-5.00 higher; seedless bellies 14-16 lbs. 5.00
higher; 42% trimmings 2.00 higher, 72% lean trimmings steady; boneless
picnic generally steady; jowl not established.
   The composite cutout- value of 51-52% 185 lbs. hog carcass was
estimated at $70.53 per cwt. up $1.23 from last Friday.
BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES
   Trading on beef variety meat markets was slow to moderate on sausage
materials markets but very slow on other markets.  Early in the week
the talk was that cheek meat would drop back since cheek meat was left
off the list of variety meats eligible for export to Mexico.  However,
rumors surfaced that cheek meat was included and late week cheek meat
traded higher.  Hearts saw good demand and finished steady with forward
sales at higher prices.  Head meat moved lower in light trading.  The
uncertainty of the eligibility and time frame of items that can be
exported to Mexico left other markets lightly tested.
   Trading on pork variety meat markets was slow to moderate this week.
Many items remained untested.  Demand was light to moderate for mostly
light to moderate supplies.  Gainers, losers, and steady markets were
about evenly divided and changes were not significant.  The only
exception was pet treat ears which was sharply higher on light supplies
and moderate demand.  Sausage materials markets were lightly tested.
Cheek meat remained steady while hearts made a slight gain on light
offerings and light demand are current price levels.  Export markets
were lightly tested on light demand.
   Market activity on tallows and greases was slow early and active
late this week.  Mounting supplies and light demand pressured prices
lower on Chicago edible tallow.  Chicago renderer bleachable tallow
also finished lower.  Chemical demand was light for moderate offerings.
The Gulf markets were quiet.  However, a note of optimism was that
China will now accept U.S. tallow.  Light supplies and good feed fat
demand continued to push prices higher on Central choice white and
yellow grease.
   Protein feed supplements experienced moderate trading this week.
Competition with other proteins, weakness on the Chicago Board of Trade
soybean meal and rail car problems resulted in lower prices on ruminant
meat and bone meal.  Pork meat and bone meal also finished lower.
Blood meal finished slightly higher Central and steady Panhandle.  A
weak undertone prevails.  Pork blood meal closed lower on light demand.
   Trading on major packer hides was slow this week.  Tanners continued
to resist offers while packers needed to move hides.  The market was in
a standoff most of the week.  Demand was light for light to moderate
offerings. In mostly light trading Heavy Native Steers, Butt Branded
Steers and Branded Cows finished steady, while Colorado Branded Steers,
Heavy Native Heifers and Branded Heifers finished lower.  Heavy Texas
Steers closed higher.
   Beef variety meats: Cheek meat 2.50-3.00 higher; head meat 13.00
lower; hearts steady; select livers not well tested; scalded tripe
mostly 1.00 lower.
   Pork variety meats: neck bones steady to 2.50 lower; pet treat ears
9.00 higher; domestic feet generally steady, export 1.00 lower; hearts
1.00 higher; cheek meat steady; partial lean snouts 1.00 lower, full
mask snouts steady; salivary glands 1.00 lower; export small box
stomachs uneven 7.50 lower to 1.00 higher; domestic small box tongues
3.00 higher; domestic livers .50 higher.
   Central choice white grease .25-1.50 higher; Central yellow grease
.25-1.25 higher; Chicago renderer bleachable tallow 1.00 lower; Chicago
edible tallow .50 lower; Central ruminant meat and bone meal steady to
11.00 lower; Panhandle ruminant meat and bone meal 2.00-10.00 lower;
pork meat and bone meal 10.00-12.00 lower; Central blood meal 11.00
higher; Panhandle blood meal generally steady; pork blood meal 5.00-
10.00 lower; Heavy Native Steer hides steady; Colorado Branded Steer
hides .50 per piece lower; Butt Branded Steer hides steady; Heavy
Native Heifer hides 1.50-2.50 per piece lower; Branded Heifer hides
1.00 per piece lower; Branded Cow hides steady; Heavy Texas Steer hides
1.00 higher.
   The average value of hide and offal for the four days ending April
22, 2004 was estimated at 8.26 per cwt., down 0.02 from last week and
up 0.17 from last year.
NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS
   Northeast special fed veal traded mostly 5.00-10.00 lower at 195.00-
205.00 (average 202.65) on moderate to good demand and moderate to
heavy offerings.  North Central hide-on starting to settle in at 185.00
(average 185.00), hide off not tested.  Demand good on moderate to
heavy offerings.
   Boxed veal cuts traded mostly weak to lower, with a few cut steady
to weak on lightly tested market.  Trading slow to moderate at the
lower levels on light to moderate demand and moderate offerings.  With
slaughter numbers back to normal, starting to see more offerings
available for sale.
   Distributive special fed veal cuts traded mostly weak to lower on
cuts.  Trading slow to moderate on light to moderate demand and mostly
moderate offerings.  With slaughter numbers last week back to normal,
starting to see more offerings of cuts on the market.
LAMB: CARCASS & PELTS
   Carcass lambs 50#'s up traded 5.50 to 8.60 lower.
   Packer sorted green salted pelts clearing steady.  Demand good for
light to moderate supplies.
Source:   USDA Market News, Des Moines, IA

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