NW_LS850 Des Moines, Iowa Friday, Jun 14, 2013 USDA LPS Market News National Carlot Meat Trade Review Week Ending: Thursday, Jun 13, 2013 CARCASS PRICE EQUIVALENT INDEX VALUES The carcass price equivalent index value of a Choice 600-900 lbs carcass was 1.87 lower at 185.72; Select 600-900 lbs carcass was 1.47 lower at 167.62 compared to last Friday. FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE For the week, boxed beef cutout values were lower on Choice and higher on Select on light to moderate demand and moderate offerings. The Select and Choice rib, chuck, and round primals trended steady to firm. The Select loin primal was steady while the Choice loin primal was lower. Choice flap meat, which has been higher over the last several weeks, did show some weakness but it was the Choice short loins and strip loins that were the main contributor to the declining loin complex. Thursday’s SJ_LS710 Slaughter report showed that slaughter numbers were down from last weeks and year ago levels leaving reduced product in the pipeline; however live steer prices and boxed beef values continue to decline. Continuing the trend from last week, Fed cattle grinds moved lower this session with the exception of Fed 73% which was firm and Fed 90% which was higher. Blended grinds were steady. Forward negotiated sales were light with a large consignment of Choice briskets being traded at prices lower when compared to the spot market. Beef trimmings were steady on light to moderate demand and offerings. As a side note, the newly released consumer sentiment survey from Thompson Reuters/University of Michigan rates consumer sentiment at its highest point since July 2007, lending support to boxed beef prices surpassing long standing records this spring. For the week: Select and Choice rib primal 1.00 to 3.00 higher; Select and Choice chuck primal 1.75 to 2.50 higher; Select and Choice round primal steady; Select loin primal steady while Choice 8.50 lower. Beef trimmings steady. Fed cattle grinds were mostly 5.00 to 10.00 lower; Blended grinds were steady. Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses down 1.23 at 200.34, Select 600/900# carcasses 1.55 higher at 184.92 when compared to last Friday. COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT Lean boneless processing beef was weak to lower and trimmings were mixed. Demand remained light to moderate for moderate to heavy offerings. Trading was slow to moderate. Weak seasonal demand and heavy domestic and import supplies continued to pressure the market. Market activity on imported beef was slow. Prices were sharply lower on a light test. Weak demand and abundant supplies continued to pressure prices. Cutter cow cutout values were weak with light demand and moderate to heavy offerings. Chuck, round, rib, loin and flank cuts were mixed. 100% lean items were moderately lower. Weaker 90% lean prices pressured the cutout value. Lean boneless beef 92-94% 1.00 to 2.00 lower; 90% weak to 2.00 lower; 85% unevenly steady; 81% 1.00 lower; 75% mostly 1.00 higher; 65% 1.00 to 3.00 lower; Other lean percentages were not fully established. 100% lean combo items were lower. Cutter cow carcass gross cutout value for Thursday, June 13, 2013 was estimated at $157.60 per cwt, 1.05 higher compared to last Friday. BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES Trading on beef varieties continued to be slow as most beef variety meets went untested for the week. Grinders were slow to come to the table as sausage orders lagged earlier. However grinders appeared to be looking at competing proteins rather than paying higher money for beef products. In addition, most traders stayed on sidelines as their buying partners preferred to buy on as needed basis. Trading for pork variety meats was very slow this week. The availability of product was limited as packers chose not to chase live hogs, limiting harvest numbers. As orders build for sausages, grinders are pushing prices higher for pork cheek meat, the preferred grinding meat for sausages. In contrast, hearts had a hard time finding buyers. While domestic hearts sold at steady money for the week, prices for export hearts slipped lower. Tallows and greases experienced slow trading this week. Good chemical demand prompted higher prices on Chicago renderer bleachable tallow. Chicago edible tallow and lard also moved higher. Demand was moderate for light offerings. Continued good biofuel demand resulted in higher prices on Central choice white grease. The export markets were quiet. Trading on protein feed supplements was moderate this week. Ruminant meat and bone meal prices moved higher this week. Demand was moderate to good for light to moderate offerings. Prices remain at a large discount to cash soybean meal. Pork meat and bone meal markets also saw strength, finishing higher on good demand. Blood meal finished generally steady Central and higher on the pork. Demand was moderate for light to moderate offerings. Market activity on major packer hides was slow this week. Packers continue to be well sold forward, while tanner resistance remained strong. The market seems to have stalled with fewer trades put together. In light tests, Butt Branded Steers and Dairy Cows ended steady, while Heavy Texas Steers finished slightly lower. Beef Variety Meats: Cheek meat not tested; Head meat unevenly steady; Hearts domestic not tested, export 3.00 lower; Tripe scalded edible export mostly 1.00 higher. Pork Variety Meats: Cheeks 5.00 higher; Hearts slashed domestic steady, Hearts multi slashed domestic 1.00 lower. Central choice white grease 1.75-2.00 higher; Chicago renderer bleachable tallow 2.00 higher; Chicago edible tallow 1.50 higher; Chicago lard 4.00 higher than most recent test; Central meat and bone meal 10.00-20.00 higher; Panhandle meat and bone meal mostly 10.00 higher; pork meat and bone meal 10.00-20.00 higher; Central blood meal generally steady; Pork blood meal 35.00 higher; Butt Branded Steer hides steady to .50 higher; Heavy Texas Steer hides 1.00 lower; Dairy Cow hides steady. The average value of hide and offal for the four days ending June 13, 2013, was estimated at 14.47 per cwt., up 0.15 from last week and up 1.49 from last year. LAMB: CARCASS & PELTS Carcass lamb sales for the week, as of 6/13/2013, carcasses less than 45 pounds continued trending downward, finishing 27.00 lower. Carcasses above 45 pounds were generally steady for the session. Carcass Cutout Report was 1.31 higher compared to last week at 247.99. Pelt activity this week compared to last report: Pelt prices were mostly weak on the majority of the shorn pelt classes and steady on unshorn pelt classes this session. Very light demand from end-users continued to cause weakness as supplies mount. Trading was slow, with light to moderate demand and offerings. Source: USDA Market News Service, Des Moines, IA Lucy Clark 515-284-4460 Desm.LGMN@ams.usda.gov 24 Hour recorded market information 515-284-4830 www.ams.usda.gov/mnreports/NW_LS850.txt 1000CDT lmc