NW_LS850 Des Moines, Iowa Friday, February 10, 2012 USDA Market News National Carlot Meat Trade Review Week Ending: Thursday, February 09, 2012 CARCASS PRICE EQUIVALENT INDEX VALUES The carcass price equivalent index value of a Choice 600-900 lbs carcass was 0.44 higher at 178.22; Select 600-900 lbs carcass was 1.87 higher at 172.63 compared to last Friday. FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE Boxed beef cutout values were higher on moderate demand and light to moderate offerings. Sales continued to be sluggish, in response to packers raising prices throughout the carcass. Middle meats had the largest contribution to the cutout, with the majority of cuts within the Select and Choice rib and loin complexes showing modest appreciation. Select and Choice chuck and round items also supported a higher market, finishing steady to firm. Beef trimmings had a light to moderate trading session, with firm prices; Fed and blended cattle grinds were generally steady. Forward negotiated activity was moderate, while packers focused on consignments of fed cattle grinds, notably 73%, 93% and Ground Chuck, trading steady to weak with current spot market prices. For the week: Select and Choice rib primal 8.00 to 9.00 higher; Select and Choice chuck primal steady to 3.00 higher; Select and Choice round primal 2.00 to 3.00 higher; Select and Choice loin primal 8.00 to 9.00 higher; Beef trimmings firm; Fed and blended cattle grinds generally steady. Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 3.20 at 186.32, Select 600/900# carcasses up 4.24 at 182.32. COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT Lean boneless processing beef and trimmings prices were mostly higher this week. Supplies were light to moderate with good demand. Trading activity was moderate to active. Demand remained much stronger than anticipated as food service demand and tight supplies pushed prices sharply higher. Outfront sales were very active as buyers tried to lock in orders for the next 2 to 4 weeks. Market activity on imported beef was very slow and prices for lean were mostly firm to 1.00 higher but some trim items steady to weak on very light trading. Higher domestic lean prices and tight supplies continued to support the import market. Cutter cow cutout values were moderately higher on moderate demand and light to moderate offerings. Round, rib and loin items were mixed while chuck and flank cuts finished the week mostly higher. 100% lean items were mixed early but were firm to higher by week’s end. Sharply higher 90% lean prices supported cutout prices. Lean boneless beef 92-94% mostly 1.00 to 3.00 higher; 90% mostly 1.00 to 3.00 higher; 85% 1.00 to 3.00 higher; 81% firm to 2.00 higher; 75% 1.00 to 3.00 higher; 65% firm; Other lean percentages were not fully established. 100% lean combo items were mixed. Cutter cow carcass gross cutout value for Thursday, February 9, 2012 was estimated at 163.99 per cwt, up 0.76 when compared to last Friday. CARLOT PORK AND PORK CARCASS CUTOUT VALUE Flat markets were the name of the game for retail pork cuts this week as both sides of the trade were content with current trading levels. Light weight bone-in hams were virtually non-existent this week due to the continuing heavy weight live hogs arriving for slaughter. Although, their heavier weight counterparts were more plentiful and traded daily as these price levels remained steady. Spot market trades for raw seedless bellies remain non- existent while skinless and market based business supported the majority of trades. Forty-two trim vacillated up and down from steady prices to down slightly then back to steady while offerings and demand were mostly light. At the same time, offerings for lean trim were mostly light which coincided with demand as sausage manufacturers production is reduced this time of the year. Fresh loins steady; butts steady to 1.00 higher; spareribs steady; skinned hams 17-20 lbs not tested, 20-23 lbs. generally steady, 23-27 lbs steady; sdls bellies 14-16 lbs no test; 42% trimmings steady to weak; 72% trim generally steady on a light test; bnls picnics steady. The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at 84.82 per cwt. dn 0.28 from last Friday. BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES Trading on beef variety meats this week was directionless as most buyers took a wait and see attitude. Continued South American holidays may have had an effect on buyer participation in the market. This lack of buyers led to a divergence of prices between domestic and export products. Trading on pork variety meats was also slow this week as packers waited for buying to pick up from the Pacific Rim countries. Without follow-up buying after the Chinese New Year, the market for most pork varieties meats continues to be limited. The one exception has been pork hearts that continue to find homes in Canada as prices had slid lower in recent weeks. Market activity on tallows and greases was moderate this week. Good soap, chemical and biofuel demand prompted higher prices on Chicago packer and renderer tallow. Chicago edible tallow also finished higher. Increased demand from biofuel interests resulted in higher prices on Central choice white and yellow grease. The export markets were quiet. Protein feed supplements experienced slow trading this week. Reduced cattle slaughters limited supplies, resulting in higher prices on ruminant meat and bone meal. Pork meat and bone meal prices also ended higher, as tight supplies fueled the increase. Central and pork blood meal prices rebounded as excess supplies were cleaned up. Trading on major packer hides was moderate this week. Light cattle slaughters limited offerings and gave packers the upper hand. Demand was moderate. All reported selections with previous week comparisons finished at higher prices. Beef Variety Meats: Cheek meat, domestic 5.00 higher; cheek meat, export 1.00 lower; Head meat 3.00-7.00 higher; Hearts, regular bone-out domestic steady to 4.00 lower; Hearts, regular bone-out export steady to 1.00 higher; Tripe, edible 1.00 lower. Pork Variety Meats: Neck bones, domestic steady to 4.00 lower; Neck bones, export not tested; Brisket bones domestic not tested; Brisket bones export 4.00 higher; Cheek meat not tested; Hearts slashed domestic 1.00 higher; Stomachs, scalded small box not tested. Central choice white grease 1.50 to 2.25 higher; Central yellow grease 0.50 higher; Chicago packer bleachable tallow 2.50-3.50 higher; Chicago renderer bleachable tallow 4.00 higher; Chicago edible tallow 1.00 higher; Central meat and bone meal 3.00-11.00 higher; Panhandle meat and bone meal 7.00-10.00 higher; pork meat and bone meal 9.00-15.00 higher; Central blood meal 25.00 higher; pork blood meal 40.00-50.00 higher; Heavy Native Steer hides 1.00 higher; Butt Branded Steer hides 1.00 higher; Heavy Texas Steer hides 1.00 higher; Branded Steer hides 1.00 higher. The average value of hide and offal for the four days ending February 9, 2012, was estimated at 12.67 per cwt., up 0.19 from last week and down 0.15 from last year. NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS Compared to last week: The special fed veal carcass weighted average composite price was down -$0.18 on moderate demand and offerings. Harvest numbers compared to last week were 1% lower. Dressed weights were down 3.3 pounds in the Northeast, down 4.4 pounds in the North Central, with the composite weight down 4.2 pounds compared to last week. Special fed veal cut prices were generally steady with a firm undertone. Chuck and round items were firm, while loin items were higher and rack items were generally steady. 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 45 pounds were -$41.65 lower. Carcasses 45 to 55 pounds were 5.26 lower while carcasses 55 to 65 pounds were 1.94 higher. Carcasses 65 pounds and heavier were -$1.69 lower to -$3.41 lower. The estimated carcass cutout value for Thursday, February 3rd was 351.28, -$2.62 lower compared to the prior week. Packer sorted green pelts were steady on a light test. Seasonal factors such as mud and over grown wool length are beginning to decrease the value of some pelts. Certain feeding regions are seeing the effects of these factors more than others. Demand was light to moderate with moderate demand for small lots of quality pelts, with 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