NW_LS850 Des Moines, Iowa Friday, February 03, 2012 USDA Market News National Carlot Meat Trade Review Week Ending: Thursday, February 02, 2012 CARCASS PRICE EQUIVALENT INDEX VALUES The carcass price equivalent index value of a Choice 600-900 lbs carcass was 2.02 lower at 177.96; Select 600-900 lbs carcass was 1.21 lower at 171.14 compared to last Friday. FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE Boxed beef cutout values were weak on moderate demand and moderate to heavy offerings. With two consecutive weeks of fairly light kill, packers limped through another trading period with unimpressive sales. Most of the weakness seen in the cutout originated from the chuck and round primals, with a notable consignment of insides showing up on Tuesday. Rib and loin cuts were firm this week, especially on Select, with most of these price increases being the result of tightened supply. Fed and blended cattle grinds lower on light to moderate demand and offerings. Forward negotiated activity was moderate, with significant consignments of Choice top butts and cap and wedge meat at prices firmer than the spot market. For the week: Select rib primal steady to 4.00 higher; Select and Choice chuck primal 1.00 to 4.00 lower; Select and Choice round primal 2.00 to 3.00 lower; Select and Choice loin primal 1.00 to 3.00 higher; Beef trimmings generally steady; Fed cattle grinds 1.00 to 2.00 lower; blended cattle grinds 2.00 to 3.00 lower. Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses down .94 at 183.19, Select 600/900# carcasses up .69 at 178.53. COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT Lean boneless processing beef and trimmings prices were mostly higher this week. Supplies were moderate with moderate to good demand. Trading was moderate. Good food service demand, tenders for the USDA school lunch program and strong seasonal demand for ground beef continued to support prices. Market activity on imported beef was slow and prices were firm to 1.00 higher. Higher domestic lean prices, tight supplies and seasonal demand continued to support prices. Cutter cow cutout values were firm on moderate demand and offerings. Round and loin items were mixed while chuck and rib cuts finished the week mostly higher. 100% lean items were mixed. Lean boneless beef 92-94% mostly 1.00 higher; 90% 1.00 higher; 85% firm to 1.00 higher; 81% firm to 1.00 higher; 75% 1.00 to 2.00 higher; 65% unevenly steady; Other lean percentages were not fully established. 100% lean combo items were mixed. Cutter cow carcass gross cutout value for Thursday, February 2, 2012 was estimated at 161.09 per cwt, up 0.76 when compared to last Friday. CARLOT PORK AND PORK CARCASS CUTOUT VALUE Prices for retail pork cuts were again sluggish this week due to more than adequate supplies and limited buyer interest as movement at retail counters was lackluster. An early market uptick on bone-in hams slowed movement though offerings were mostly light as buyers stepped back. Although, late week inventories stabilized, light weight hams garnered a premium while heavy hams being more plentiful trended lower. Boneless ham experienced moderate offerings and price levels responded lower. Skin-on seedless bellies traded sharply higher on just a few loads which lent support to the cutout. Demand from foodservice is the driving force keeping bacon slicer’s production at full speed while retail demand is light. The trim complex also helped to support the cutout as price levels for both forty-two and seventy-two trim advanced though offerings tightened up after weekend hold over product cleared. Fresh loins 1.00-2.00 lower; butts generally steady; spareribs unevenly steady; skinned hams 17-20 lbs not tested, 20-23 lbs. 2.00 higher, 23-27 lbs unevenly steady; sdls bellies 14-16 lbs 5.00 higher; 42% trimmings steady to 4.00 higher; 72% trim 4.00-5.00 higher; bnls picnics 2.00-5.00 higher. The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at 84.95 per cwt. up 1.69 from last Friday. BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES Trading picked up on beef variety meats this week as prices slid lower on grinding materials. Packers appeared to be willing to take lower money for beef variety cuts that are popular in Mexico. Additionally, the inventory of these cuts had increased through the holidays and packers may have felt the need to move some product before the supplies become burdensome. However, prices may not fall much further as packers have begun to reduce harvest numbers to stem the flow of red ink associated with processing beef cuts. Trading on pork variety meats also picked up this week as a wide variety of pork cuts was reported. Trading to the Pacific Rim began to rebuild as the Chinese New Year celebration winds down and traders need to replenish warehouse supplies. Lower prices for most of these pork varieties were reported however. In contrast, prices for hearts rebounded from recent lows established last week. Compared to last week, market activity on tallows and greases had light to moderate activity. Central choice white grease had moderate offerings with good demand. Chemical demand was light to moderate for moderate offerings. This week, Central choice white grease finished higher and yellow grease prices ended steady. Feed fat and biofuel demand and offerings were moderate. The Gulf markets woke up this week and traded both edible and inedible tallows. Trading on protein feed supplements was light to moderate this week. Unseasonable warmer temperatures, lead to some lighter feed demand in the meat and bone meal markets. Compared to last week, ruminant meat and bone meal prices were steady to weaker, on light to moderate reported trading. Pork meat and bone meal prices ended the week higher, as it followed the soybean meal markets higher. In a light test, blood meal prices closed higher. Demand was light to moderate for moderate offerings. Major packer hides saw more activity this week, as the Chinese traders were back in the market after their New Year. Demand was light to moderate for light offerings. Packers were able to command higher prices due to the lighter offerings and tanners had to pay steady to slightly higher prices to purchase hides. For the week, Heavy Native Steers finished steady to higher, while Butt Branded Steers ended steady. Heavy Texas Steers closed higher. Beef Variety Meats: Cheek meat, domestic 1.00 lower; cheek meat, export no test; Head meat no test; Hearts, regular bone-out domestic steady to 4.00 lower; Hearts, regular bone-out export 3.00-6.00 lower; Oxtails not tested; Tripe, edible no recent comparison. Pork Variety Meats: Neck bones, domestic steady to 2.00 higher; Neck bones 4.00 lower; Brisket bones domestic no comparison; Brisket bones export 1.00 lower; Hearts slashed domestic 1.00 higher; Hearts, single slashed export 2.00 higher; Hearts, multi-slashed export not tested; Salivary glands steady to 3.00 higher; Stomachs, scalded small box not tested; Tongues, green boneless, tip-on export 14.00 lower; Uteri not tested. Central choice white grease 2.50 to 2.00 higher; Central yellow grease 0.25 lower; Chicago choice white grease steady; Central meat and bone meal 9.00 lower to 5.00 higher; Panhandle meat and bone meal steady to 2.00 lower; pork meat and bone meal 10.00-25.00 higher; pork blood meal steady; Heavy Native Steer hides 2.00 higher; Butt Branded Steer hides no quote; Heavy Texas Steer hides 1.00 higher. The average value of hide and offal for the four days ending February 2, 2012, was estimated at 12.48 per cwt., up 0.11 from last week and down 0.37 from last year. NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS Compared to last week: The special fed veal carcass market was steady to 2.00 higher. Trade was moderate with moderate demand and offerings. Harvest numbers were 1% lower compared to last week. Dressed weights were down 1.6 pounds in the Northeast, down 4.9 pounds in the North Central, with the composite weight down 3.4 pounds compared to last week. Special fed veal cut prices were generally steady on chuck and round items, while rack items were sharply higher. Both hind and foreshank Osso Bucco were higher. Trading was moderate on moderate demand and offerings. LAMB: CARCASS & PELTS Lamb carcass values were mixed this week with light to moderate demand and offerings. Carcasses weighing less than 65 pounds were $1.09 to $3.21 higher while carcasses weighing 65 pounds and heavier were -$0.96 lower to -$2.69 lower. The estimated carcass cutout value for Thursday, February 3rd was 353.90, -$0.55 lower compared to the prior week. Packer sorted green pelts were Steady to 1.00 higher on a very light test. Seasonal factors such as mud and over grown wool length are beginning to decrease the value of some pelts. Demand was light to moderate with good demand for small lots of quality pelts, on moderate 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 www.ams.usda.gov/lsmarketnews 1000C lmc