NW_LS850 Des Moines, Iowa Friday, November 06, 2009 USDA Market News National Carlot Meat Trade Review Week Ending: Thursday, November 05, 2009 CARCASS PRICE EQUIVALENT INDEX VALUES The carcass price equivalent index value of a Choice 600-900 lbs carcass was unchanged at 129.88; Select 600-900 lbs carcass down 0.11 at 124.18 compared to last Friday. FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE Boxed beef cutout values were firm on light to moderate demand and offerings. The beginning of the week lent spillover support from last session on light volumes; as the week progressed however, price lists were adjusted to encourage sales. Cutout values were pressured by chuck, round and loin items as packers work to keep manageable inventories. In contrast rib items moved sharply higher as procurement departments plan for the holiday season. Forward business was moderate this week with no trades of significant volume. Beef trimmings were generally steady on moderate demand and offerings. For the week: Select and Choice rib primal 13.00 higher; Select and Choice chuck primal 1.00 lower; Select and Choice round and loin primals 1.00 to 2.00 lower; Beef trimmings generally steady; Fed cattle and blended grinds were mostly steady to 2.00 lower. Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 0.50 at 141.33; Select 600/900# carcasses up 0.38 at 135.76. COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT Lean boneless processing beef prices were mostly firm to higher this week on moderate to heavy offerings. Trading activity was moderate to active with moderate to good demand. Early week market activity on imported beef was slow with price levels not established. A few outfront sales were mostly steady. The stronger domestic market, tight supplies and food service demand supported the import market but early trading was at a near standstill. Cow cuts were mixed on moderate demand and offerings. 100% lean items were mixed. Eyes of round, flats and eyes and SPBs were higher while striploins and inside rounds closed lower. Lean boneless beef 92-94% steady to firm; 90% steady to firm; 85% steady to weak; 81% 2.00 to 3.00 lower; 75% 1.00 to 2.00 lower; 65% 2.00 to 3.00 higher; Other lean percentages not fully established. 100% lean combo items were mixed. Cutter cow carcass gross cutout value for Thursday, November 05, 2009 was estimated at 102.26 per cwt, down 0.37 when compared to last Friday. CARLOT PORK AND PORK CARCASS CUTOUT VALUE Demand for loin cuts continued to be dismal and offerings remained plentiful this week. These combined to force sellers to lower prices in order to move their inventories. Prices for butts saw a slight run up early week due to some immediate ship business for a few retailers on ad, but it was short lived with the Thanksgiving holiday right around the corner. Export interest combined with seasonal demand caused bone-in hams to trade at sharply higher prices as the week opened. These new levels shut the domestic demand off for both bone in and boneless hams. By mid week, prices began to deteriorate only to end steady with last week’s prices. Even when faced with light slicer demand, packers were able to hold the seedless belly prices steady throughout the week. Reduced ham boning, depleted lean trimming offerings and forced sausage manufacturers to pay higher prices throughout the week. Fresh bone-in loins 4.00-5.00 lower; butts unevenly steady; spareribs steady to 3.00 higher; skinned hams 17-20 lbs 4.00 higher; 20-27 lbs steady; seedless bellies 14-16 lbs steady; 42% trimmings generally steady to 1.00 lower; 72% trimmings 4.00 higher; boneless picnic 1.00-2.00 lower. The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at $59.66 per cwt. up 1.49 from last Friday. BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES Trading on beef variety meats showed increased activity as negotiated sales on a package of head meat and hearts for delivery in December was turned in. In limited trading, domestic cheek meat was higher as were export hearts. While buyers were still happy to stand on the sidelines, availability of most beef varieties was limited as packers continue to sell product out front on formulated sales. Trading continued to be active this week on pork varieties as domestic and export interest increased. Prices were steady or stronger for almost all of the pork varieties except ears. Prices are expected to remain firm as international holidays loom in the future and the need to fill warehouses overseas is pressuring export buyers. Market activity on tallows and greases was slow this week. Light soap and chemical demand combined with light offerings left trading at a standstill on Chicago inedible tallows. Accumulating supplies and light demand pressured prices lower on Chicago edible tallow. Conversely, tight supplies and moderate demand prompted higher prices on Chicago lard. Central choice white and yellow grease moved slightly higher. Feed fat demand was moderate for light to moderate offerings. The Gulf markets were quiet. Trading on protein feed supplements was moderate this week. Tight supplies and moderate to good feed demand pushed prices higher on ruminant and pork meat and bone meal. Pork blood meal finished steady on moderate demand and offerings. Major packer hides experienced another week of slow trading. Packers were comfortable in their sold forward positions and holding firm. Tanners were resisting, but if they needed hides they had to pay higher prices. Demand and offerings were light. Heavy Native Steers, Branded Cows and Heavy Texas Steers all finished higher. Beef variety meats: domestic cheek 1.00 higher compared to the last trade; export hearts 1.50 higher. Pork variety meats: domestic neck bones 2.0 higher; domestic brisket bones 7.00 higher; tails steady; cheek meat 1.00-3.00 higher; pet food ears 5.00- 14.00 lower; domestic front feet 2.00 higher; domestic hearts steady; hocks 2.00 higher; salivary glands not tested; domestic stomachs 2.00 higher; export stomachs 7.00 higher; scalded and scraped tongues 6.00 higher compared to most recent quote; uteri steady. Central choice white grease 1.00 higher; Central yellow grease .75 higher; Chicago edible tallow .50 lower; Chicago lard 1.50 higher; Central meat and bone meal 10.00-20.00 higher; Panhandle meat and bone meal 5.00-15.00 higher; pork meat and bone meal 15.00-30.00 higher; Heavy Native Steer hides steady to mostly 3.00 per piece higher; Branded Cow hides 1.50 per piece higher; Heavy Texas Steer hides 4.00 higher. The average value of hide and offal for the four days ending November 5, 2009 was estimated at 8.51 per cwt., up 0.16 from last week and down 1.24 from last year. NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS The special fed veal carcass weighted average composite price was 0.13 higher on light to moderate offerings and good demand. Harvest numbers compared to last week were nearly 8% lower. Dressed weights were up 1.3 pounds in the Northeast, up 0.4 pounds in the North Central area, with the composite up 0.9 pounds compared to last week. Special fed veal cut prices were steady to firm. Demand light to moderate with slow to moderate market activity. LAMB: CARCASS & PELTS Carcass lambs sales for the week, as of 10/29/2009 were mixed; 55#'s and down 1.50 to 4.50 higher; 55-65#’s sharply lower; 65#’s and up .60 to 1.61 lower. Packer sorted green salted pelts were steady. There was some evidence that interest in lower quality pelts increased. Demand light to moderate and trading slow to moderate. Source: USDA Market News, Des Moines, IA 515-284-4460 http://www.ams.usda.gov/mnreports/nw_ls850.txt 10:00c lmc .