051110 National Carlot Meat Trade Review

CARCASS PRICE EQUIVALENT INDEX VALUES

The carcass price equivalent index values of a Choice 600-900 lbs carcass up 0.40 at 135.86; Select 600- 900 lbs carcass up .18 at 122.37 compared to last Friday.

FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE

Boxed beef cutout values were firm on moderate demand and offerings. Seasonal demand for rib and loin cuts provided the support for the higher cutout values. However, Choice loin cuts started to show signs of weakness as inventories of top butts and short loins became burdensome. Prices on chuck and round cuts continue to trend at steady price levels as demand and offerings are on equal playing fields. For the most part, demand was centered on the domestic spot market. Demand for forward sales and the export market was rather light. Fresh beef trimmings trended slightly lower on light to moderate demand and moderate offerings. Frozen interest developed late in the trading session. Prices on fed cattle grinds were steady to firm on mostly moderate demand and offerings.

For the week: Choice and Select rib primal 1.50 to 3.50 higher; Choice and Select chuck primal steady to 1.00 lower; Choice and Select round primal generally steady; Choice and Select loin primal steady to 4.50 higher; Beef trimmings 1.50 lower; Fed cattle grinds steady to 3.00 higher, while blended grinds uneven.

Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 0.47 at 145.27; Select 600/900# carcasses up 0.81 at 132.12.

COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT

The lean boneless beef prices followed the same trend as in 1999 where the 90% lean market at the forty fourth week finished the trading period with steady to weak prices. However, the market seasonally drops 3.00 to 10.00 this week before it starts turning upward throughout the holiday season as grinders begin buying for holiday grinding needs. Prices on 85% lean were two-tiered this week as product from steer/heifer sources traded at higher levels due to limited offerings. However, overall trading on the 85% lean was light as the majority of the reported volume was from less than carlot volume. The middle lean percentage items moved at firm prices on limited trading. Meanwhile, the 65% lean traded at steady to lower prices on light to moderate demand for moderate offerings.

Import boneless beef trended firm to higher mid-week on light offerings as shipments from overseas remain limited at higher asking prices. The cow cuts prices were mostly weak to lower, especially the 100% lean items and tenderloins due to light demand for moderate to heavy offerings.

Lean boneless beef 92-94% generally steady; 90% steady to 1.00 lower; 85% unevenly steady; 81% 1.00 to 3.00 higher; 75% 2.00 higher; 73% generally steady; 65% steady to 1.50 lower. 100% lean items as of Thursday were sharply lower. The Cutter cow carcass gross cut out value for Thursday, November 03, 2005 was estimated at 101.11 per cwt., dn 2.02 from a week ago Friday.

CARLOT PORK AND PORK CARCASS CUTOUT VALUE

Trading levels for loins were mostly lower for the week as offerings continued to overshadow demand, especially in the boneless categories. A slight price decline was noted for the Boston butt complex early week. By mid week, some renewed retail interest allowed values to stabilize. Ham buyers procured product at a steady pace early before increased export interest played a major role in providing support to the domestic market as prices levels firmed. Negotiated seedless belly trades were limited, even though market based orders dominated the vast majority of offerings while board activity lent support to the cash. Abundant offerings enticed buyers early week as lean trim prices declined slightly before reaching a comfortable level which buyers and sellers could continue to do business.

Fresh loins weak to 3.00 lower; Boston butts 1.00-2.00 lower; spareribs steady; skinned hams 17-20 lbs. steady, 20-23 lbs. steady, 23-27 lbs. generally steady; seedless bellies 14-16 lbs. 1.00 higher; fresh 42% trimmings 5.00 higher; 72% lean trimmings weak to 1.00 lower; boneless picnics steady.

The composite cutout value of 51-52% 185 lbs. hog carcass was estimated at $64.34 per cwt. dn 0.47 from last Friday.

BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES

Trading on beef variety meat markets was mostly very slow again this week. Markets were very thinly tested. On sausage materials markets, cheek meat moved sharply lower, head meat ended mostly steady to lower, and hearts remained steady. Demand was light and offerings were generally light to moderate. On other markets, scalded tripe end steady to lower while lips were sharply lower on light demand and light to moderate offerings.

Trading on pork variety meat markets was moderate to active mid to late week after a slow start. Demand was fairly good at steady to mostly lower prices as harvest numbers continued to remain high making product more readily available. On sausage materials markets, cheek meat moved moderately lower looking for a level that would put them back into formulation. Hearts remained at steady levels on light demand and offerings. Export markets saw a little more activity. Kidneys and feet ended lower.

Tallows and greases experienced slow trading this week. Tight supplies and moderate demand prompted higher prices on Chicago edible tallow. Chicago packer and renderer tallow finished steady. Chemical demand was moderate for moderate offerings. Central choice white and yellow grease ended higher on improved feed fat demand. The Gulf markets were quiet.

Market activity on protein feed supplements was moderate this week. Ruminant meat and bone meal finished steady on light demand and offerings. Pork meat and bone meal ended steady to lower. This market separated into a two tiered market with the rail delivered product bringing the higher prices. Pork blood meal finished steady.

Trading on major packer hides continued to be slow this week.

The light slaughters have allowed the packers to hold firm in their offerings. Tanner demand continued to be light with leather business being slow to moderate. Heavy Native Steers and Butt Branded Steers ended steady, while Heavy Texas Steers finished steady to slightly higher.

Beef variety meats: Check meat 10.00-11.00 lower; head meat mostly steady to 4.00 lower; domestic hearts mostly steady, export hearts not tested; lips 7.00-8.00 lower; export select livers not tested; scalded tripe mostly steady to 4.00 lower.

Pork variety meats: neck bones steady; 30# full cut brisket bones mostly 3.00 lower; tails 4.00 lower; domestic feet 6.00 lower, export 3.00 lower than last established market; domestic and export hearts steady; check meat 6.00 lower; salivary glands 2.50-3.00 higher; partial lean snouts4.00 lower; domestic small box stomachs 2.00 higher; tongues not tested; belly skins .50 lower; kidneys 1.50 lower.

Central choice white grease .25 higher; Central yellow grease steady to .50 higher; Chicago renderer tallow <0.15 steady; Chicago edible tallow steady; Central ruminant meat and bone meal steady; Panhandle ruminant meat and bone meal steady; pork meat and bone meal steady to 5.00 lower; pork blood meal steady; Heavy Native Steer hides steady; Butt Branded Steers hides steady; Heavy Texas Steer hides steady to .50 higher.

The average value of hide and offal for the four days ending November 03, 2005 was estimated at 8.20 per cwt., up 0.01 from last week and up 0.27 from last year.

NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS Northeast special fed veal prices were generally steady. North Central prices were also mostly steady. Demand was moderate for light to moderate offerings. Prices have stabilized after several weeks of trending higher. Many trade participates reported that future supplies look to be limited. This was partly due to more competition from the dairy beef program feeders.

Special fed veal cut prices were mostly steady his week. Some packers raised their price to keep pace with the special fed veal carcass market. Trading was slow on a moderate demand for the light to moderate offerings.

LAMB: CARCASS & PELTS

Carcass lambs 40-85#'s traded 0.29 to 2.07 higher; 85#'s up 1.27 lower. Packer sorted green salted pelt prices steady.

Source: cattlenetwork.com

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com