NW_LS850 Des Moines, Iowa Friday, November 20, 2009 USDA Market News National Carlot Meat Trade Review Week Ending: Thursday, November 19, 2009 CARCASS PRICE EQUIVALENT INDEX VALUES The carcass price equivalent index value of a Choice 600-900 lbs carcass was down 0.63 at 126.21; Select 600-900 lbs carcass down 0.84 at 119.47 compared to last Friday. FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE Boxed beef cutout values were generally steady on moderate to good demand and moderate to heavy offerings. Load counts peaked in the middle of the week with some of the highest load counts we have seen in months. While impressive movement was seen in most cuts, the most noticeable volumes were in chuck rolls and inside rounds. And yet, despite unloading such large volumes, packers managed to keep their prices fairly consistent with last week, with only minor weakening in the rib and round which was counter balanced by firmer prices in loin primal. Forward business was average, with moderate activity seen in chuck rolls and inside rounds at prices higher than the current spot market. Beef trimmings moved higher this week on light to moderate demand and offerings. For the week: Select and Choice rib primal 1.00 to 2.00 lower; Select and Choice chuck primal steady to 1.00 lower; Select and Choice round primal 2.00 to 3.00 lower; Select and Choice loin primal 3.00 to 4.00 higher; Beef trimmings 4.31 higher; Fed cattle and blended grinds were generally steady. Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 0.19 at 139.61; Select 600/900# carcasses down 0.12 at 132.07. COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT Lean boneless processing beef prices were mostly 1.00 to 4.00 lower this week on moderate to heavy offerings. Trading activity was moderate with light to moderate demand. Early week market activity on imported beef was slow with price levels mostly 1.00 to 2.00 lower compared to last week. The weaker domestic market pressured imported beef prices. Strong food service demand and tight supplies offset some of the weakness in the marketplace. Cow cuts were mixed on light to moderate demand and offerings. Chuck, round and loin cuts finished lower while rib cuts were mixed. Fresh and frozen flanks finished higher on active trading. 100% lean items were slightly higher with the exception of flats and eyes which closed slightly lower. Lean boneless beef 92-94% 1.00 to 4.00 lower; 90% 2.00 to 4.00 lower; 85% 1.00 to 2.00 lower; 81% mostly weak to 1.00 lower; 75% unevenly steady; 65% unevenly steady; Other lean percentages not fully established. 100% lean combo items were slightly higher. Cutter cow carcass gross cutout value for Thursday, November 19, 2009 was estimated at 100.32 per cwt, down 1.00 when compared to last Friday. CARLOT PORK AND PORK CARCASS CUTOUT VALUE Trading levels for retail cuts, bone-in loins and butts, rebounded this week in spite of the upcoming holiday. Some retailers were preparing for ads post holiday that will highlight pork in particular regions. Although the bone-in loin market inched higher, boneless prices remained under pressure as supplies were abundant. Light weight bone-in ham price levels garnered a premium this week, as the seasonal increase in demand combined with heavier live hog weight currently arriving for slaughter. At the same time, demand for heavier hams was light to moderate while inventories accrued at a steady pace pressuring price levels lower. Offerings for seedless bellies continued to outpace demand as inventories swell. Although movement of bacon at the retail level was slow as retailers are featuring other competitive proteins for the holiday season next week. Lean trimmings experienced a two-tiered market with most trades being on the lower end as demand was mostly light to moderate. Fresh bone-in loins 1.00-2.00 higher; butts 8.00-9.00 higher; spareribs 1.00-3.00 higher; skinned hams 17-20 lbs 1.00 higher; 20-23 lbs 2.00 lower; 23-27 lbs 3.00 lower; seedless bellies 14-16 lbs steady; 42% trimmings 2.00 higher; 72% trimmings mostly 2.00 lower; boneless picnic 2.00 higher. The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at $56.94 per cwt. dn .44 from last Friday. BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES Trading on beef variety meats increased late in the week as both domestic and export demand increased. The added demand for cheek meat was spurred by lower asking prices which became more appealing to buyers. In contrast, with both domestic and international holidays approaching and export buyers needing to restock their inventories which had been drawn down in recent weeks, head meat and hearts traded at higher price levels. Trading active continued to be good on pork varieties as export interest buoys the market as the holiday season approaches. Additionally, seasonal variety meats began to make their appearance on the sheet. Market activity on tallows and greases was slow this week. Good chemical demand prompted higher prices on Chicago packer and renderer tallow. Chicago edible tallow and lard finished steady. Central choice white and yellow grease continued to move higher on good demand for moderate offerings. The Gulf markets were quiet. Protein feed supplements experienced moderate to active trading this week. Feed demand was good as buyers were covering their needs through the holiday. Offerings were moderate. Central, Panhandle and pork meat and bone meal all finished higher. Pork blood meal ended steady to higher while Panhandle blood meal finished steady to lower. Demand was moderate to good for mostly light offerings. The blood meal market ended two tiered with rail cars selling at a discount to trucks. Trading on major packer hides continued to be slow. Demand and offerings were light. Light cattle slaughters and well sold forward positions gave packers the upper hand. Tanners needing hides had to pay higher prices. In light tests, Heavy Native Steers, Dairy Cows and Branded Steers all ended the week higher. Beef variety meats: domestic cheek 4.50-6.00 lower, export cheek meat 2.50-5.00 lower; head meat 5.00-7.00 higher; domestic hearts 3.00-4.00 higher; export hearts not comparable; oxtails and tongues no comparison. Pork variety meats: domestic neck bones 2.00 higher; domestic brisket bones 2.00 lower, export brisket bones 3.00-4.00 higher; tails steady; cheek meat 3.00 higher; chitterlings no comparison; pet ears not tested; domestic front feet 6.00 higher, export front feet 4.00 higher; domestic hearts 1.50 higher, export hearts not comparable; salivary glands 1.00 higher; domestic stomachs steady. Central choice white grease 1.00-2.00 higher; Central yellow grease 1.00 higher steady; Chicago packer bleachable tallow 1.75 higher; Chicago renderer bleachable tallow 1.75 higher; Chicago edible tallow steady; Chicago lard steady; Central meat and bone meal 10.00-12.00 higher; Panhandle meat and bone meal 5.00-15.00 higher; pork meat and bone meal 18.00-40.00 higher; Panhandle blood meal steady to 70.00 lower; pork blood meal steady to 50.00 higher; Heavy Native Steer hides 2.00 per piece higher; Dairy Cow hides 8.00 per piece higher; Branded Steer hides .50 higher. The average value of hide and offal for the four days ending November 19, 2009 was estimated at 9.27 per cwt., up 0.24 from last week and up 0.53 from last year. NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS The special fed veal carcass weighted average composite price was 0.40 higher on light to moderate offerings and good demand. Harvest numbers compared to last week were nearly 5% lower. Dressed weights were down 6.5 pounds in the Northeast, up 1.5 pounds in the North Central area, with the composite down 2.3 pounds compared to last week. Special fed veal cut prices were mostly steady, with a lower undertone noted. Consumers continue to dine in and are opting to purchase other meat proteins. Demand light to moderate with slow to moderate market activity. LAMB: CARCASS & PELTS Carcass lambs sales for the week, as of 11/19/2009 were mostly lower; 65#'s and down trended lower; 65 and up trended 1.39-1.91 lower. Packer sorted green salted pelts steady. Demand moderate on higher quality pelts, light on lower quality pelts. Movement slow to moderate, with China remaining the only active market player. Source: USDA Market News, Des Moines, IA 515-284-4460 http://www.ams.usda.gov/mnreports/nw_ls850.txt 10:00c lmc .