U.S. National Carlot Meat Trade Review

DES MOINES - Jun 11/10 - 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, June 10, 2010
CARCASS PRICE EQUIVALENT INDEX VALUES
   The carcass price equivalent index value of a Choice 600-900 lbs carcass
was down 2.32 at 143.60; Select 600-900 lbs carcass down 3.51 at 135.28
compared to last Friday.
FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE
   Boxed beef cutout values were sharply lower on moderate to fairly good
demand and heavy offerings.  The resumption of a full slaughter schedule added
to packer inventories, while the lower undertone on the fed cattle trade gave
buyers additional negotiating leverage.  One exception to the overall lower
market was the rib complex, where prices generally held steady.  Chuck and
round cuts were lower, with chuck rolls trading heavily by midweek.  The loin
complex continues to have steep depreciation, particularly top butts and
strips.  The forward business category exhibited significant quantities of
Choice briskets priced slightly under spot market, while Select chuck rolls
were consistent with present trading.  Beef trimmings were sharply lower on
moderate to fairly good demand and heavy offerings.  Fed cattle grinds were
lower to sharply lower on 73%, while blended grinds were steady to weak.
   For the week: Select and Choice rib primal 1.00 higher; Select and Choice
chuck primal 5.00 to 7.00 lower; Select and Choice round primal 6.00 to 8.00
lower; Select and Choice loin primal 8.00 to 9.00 lower; Beef trimmings 8.00
lower; Fed cattle grinds mostly 7.00 to 16.00 lower while blended cattle
grinds steady to 4.00 lower.
   Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses down 5.29
at 155.16; Select 600/900# carcasses down 6.23 at 146.18.
COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT
   Lean boneless processing beef and trimmings prices were mostly 1.00 to 4.00
lower. Trading was light to moderate this week on light to moderate demand and
offerings. Lower cattle prices, strong buyer inventories, weaker than
anticipated seasonal demand and the weakening import market continued to
pressure domestic prices.
   Early week market activity on imported beef was slow and prices were mostly
3.00 to 4.00 lower compared to the last market test. Lower domestic prices and
weaker demand pressured the import market. The stronger dollar has lead to
more imported product being available for the U.S. market.
   Cow cuts were mixed on light demand and moderate offerings. Chuck and rib
cuts were mixed while round and loin cuts finished mostly lower. 100% lean
items finished mixed.
   Lean boneless beef 92-94% 1.00 to 2.00 lower; 90% 1.00 to 3.00 lower; 85%
1.00 to 4.00 lower; 81% 1.00 lower; 75% 1.00 to 2.00 lower; 65% sharply lower;
Other lean percentages not fully established. 100% lean combo items were
mixed; Cutter cow carcass gross cutout value for Thursday, June 10, 2010 was
estimated at 128.30 per cwt, down 1.31 when compared to last Friday.
CARLOT PORK AND PORK CARCASS CUTOUT VALUE
   Prices for retail cuts slid lower throughout the week due to very limited
demand at retail counters where price points have been raised. Almost all cuts
saw the decline, but bone-in loins and butts depreciated the greatest amount
as suppliers had to lower asking levels in order to get purchase orders from
buyers. Processing cuts experienced a delicate balance between price levels
which would encourage product moving through the pipeline during the early
week. However, at the end of the week hams unexpectedly bounced higher on
rumored export demand. Lean trim prices continued to firm as demand for this
item outpaced offerings.
   Fresh bone-in loins 5.00-9.00 lower; butts 9.00-17.00 lower; spareribs
mostly 2.00-8.00 lower; skinned hams 17-20 lbs not tested, 20-23 lbs steady;
23-27 lbs 5.50 higher; seedless bellies 14-16 lbs steady; 42% trimmings 7.00-
12.00 lower; 72% trimmings 2.00 higher; boneless picnic not tested.
   The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at
$83.62 per cwt. dn 1.16 from last Friday.
BY-PRODUCTS:  VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES
   Market activity on beef variety meats was slow this week.  On sausage
materials, demand was moderate for moderate to heavy supplies.  Hearts ended
steady while head meat finished steady to lower. Tongues closed slightly lower
as mounting supplies pressured the market.
   Trading on pork variety meats was moderate this week.  Sausage materials
saw heavy supplies pressure prices lower on cheek meat and salivary glands.
The exception was export hearts which finished higher.  Neck bones and tails
ended steady while feet moved lower.  Demand and offerings were light to
moderate.  Heavy supplies continued to push prices lower on stomachs.
   Tallows and greases experienced slow trading this week.  Good demand from
the chemical and soap sectors prompted higher prices on Chicago packer and
renderer tallow.  In early trading, Chicago choice white grease traded at
steady prices.  Chicago lard also finished steady on light to moderate demand
and offerings.  Central choice white and yellow grease ended mostly steady.
Feed fat and biofuel demand was moderate for moderate offerings.  The export
markets were quiet.
   Market activity on protein feed supplements was moderate this week.  Good
feed demand continued to push prices higher on ruminant and pork meat and bone
meal.  Pork and Panhandle blood meal ended lower under pressure of heavy
supplies and light demand.  In an early test, Central blood meal traded at
steady prices.
   Trading on major packer hides was slow this week.  Demand and offerings
were light.  Packers dug in their heels and held out for higher prices.
Tanners needing hides had to pay more than last week.  In light tests Branded
Steers and Branded Cows finished higher.
   Beef variety meats: head meat steady to 2.00 lower; hearts steady; Swiss-
Cut #1 black tongues 1.00 lower.
   Pork variety meats: domestic neck bones steady; tails steady; ears, pet
treat steady; cheek meat 4.00 lower; domestic front feet 2.00 lower; export
front feet 2.00 lower; whole export hearts 6.50 higher; salivary glands 4.00
lower; stomachs 4.00-5.50 lower.
   Central choice white grease mostly steady; Central yellow grease generally
steady; Chicago packer bleachable tallow .50 higher; Chicago renderer
bleachable tallow .50 higher; Chicago choice white grease steady; Chicago lard
steady; Central meat and bone meal 5.00-15.00 higher; Panhandle meat and bone
meal steady to 15.00 higher; pork meat and bone meal steady to 5.00 higher;
Central blood meal steady; Panhandle blood meal 55.00 lower; pork blood meal
80.00 lower; Branded Cow hides 3.50 per piece higher; Branded Steer hides 1.50
higher.
  The average value of hide and offal for the four days ending June 10, 2010
was estimated at 10.45 per cwt., up 0.01 from last week and up 3.08 from last
year.
NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS
   The special fed veal carcass weighted average composite price was 0.04
lower on light to moderate offerings and moderate to good demand. Harvest
numbers compared to last week were nearly 10% lower. Dressed weights were up
0.8 pounds in the Northeast, up 4.3 pounds in the North Central area, with the
composite up 2.5 pounds compared to last week.
   Special fed veal cut prices were steady this week on a light test. Demand
light to moderate with moderate supply and slow movement.
LAMB: CARCASS & PELTS
   Carcass lambs sales for the week, as of 6/10/2010 were mixed, with 65#’s
and down trended lower; 65-85#’s trended 1.14-2.76 higher; and 85#’s and up
trended 0.59 higher.
   Packer sorted green salted pelts were steady. Demand good with good
movement and extremely light supply.
Source:   USDA Market News, Des Moines, IA

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