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CARCASS PRICE EQUIVALENT INDEX VALUES
The carcass price equivalent index value of a Choice 600-900 lbs carcass up 2.63 at 139.74; Select 600-
900 lbs carcass up 2.53 at 128.42 compared to last Friday.
FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE
Boxed beef cutout values were higher on light to moderate demand. Packers entered the period in an
improved inventory position after last week’s increased trade volume and 585,000 harvest rate. Several
plants have drastically reduced more hours this trading period leaving the current pace at 35,000 under last
week. This has allowed packers to delay buying cattle through Thursday in hopes of lowering procurement
costs. The result has been a beef trade forced higher with packers going from burdensome inventories to
rationing product in a market filled with uncertainty. Price increases were generally consistent among cuts
with the exception of Choice ribs which appreciated relatively more after last week’s heavy sales.
Forward interest was light with the exception of a package of Select tenderloins priced notably lower
than the spot market. The considerable harvest reductions predictably drove beef trimmings higher on
reduced offerings. Fed cattle and blended grinds were generally steady except fed 73%, which appreciated
after last week’s considerable trade activity.
For the week: Choice rib primal 10.00 higher, while Select 3.00 higher; Choice and Select chuck primal
4.50 higher; Choice and Select round primal 3.00 to 4.00 higher; Choice and Select loin primal 3.50 to 4.00
higher; Beef trimmings 6.00 higher; Fed cattle and blended grinds generally steady.
Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 4.71 at 149.64; Select 600/900#
carcasses up 3.52 at 139.10.
COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT
Severe winter weather conditions on the East Coast caused many retail grinders to step into the market to
replenish supplies. This along with limited live lean cow numbers forced the lean boneless beef prices
higher. In addition, packers continued to bid higher on live cows in order to fill normal business needs.
Many threatened to reduce hours next week due to the lack of numbers and decreasing margins. The lower
lean percentage items trended mostly steady on moderate demand and offerings. Import boneless beef
prices were firm to higher on moderate demand for light offerings early in the week. However, buyer
interest improved thoughout the week as the domestic market trended upward. Cow cut prices were mostly
lower on light demand and light to moderate offerings.
Lean boneless beef 92-94% 2.50 to 5.00 higher; 90% 1.50 to 5.00 higher; 85% steady to 2.00 higher;
81% not established; 75% generally steady; 73% not established; 65% steady. 100% lean items outside
rounds firm; all other items weak to lower. The Cutter cow carcass gross cut out value for Thursday,
February 16, 2006 was estimated at 110.61 per cwt, up 2.96 from last Friday.
CARLOT PORK AND PORK CARCASS CUTOUT VALUE
Prices for pork cuts continued to emulate the surge in live hog trading levels by moving higher
throughout the week. Renewed retail interest due to an increase in feature activity forced buyers to seek and
procure additional loads to meet consumer demand. This, along with limited supplies, caused the markets
to materialize. At the same time, reduced offering for processing cuts caused price levels to appreciate
while demand was light to moderate. Trading was slow as most ham and belly processors had good bought
position and lacked orders for their finished product. Prices for lean trimmings firmed slightly only after
product from last week had cleared the market at lower price levels.
Fresh loins 3.00-5.00 higher; Boston butts 5.00-6.00 higher; spareribs generally steady to weak; skinned
hams 17-20 lbs. 1.00-4.00 higher from last quote, 20-23 lbs. 2.00-7.00 higher, 23-27 lbs. mostly 5.00
higher; seedless bellies 14-16 lbs 2.00 higher, fresh 42% trimmings steady; 72% lean trimmings 2.00
higher; boneless picnics not tested.
The composite cutout value of 51-52% 185 lbs. hog carcass was estimated at $62.42. per cwt. up 3.15
from last Friday.
BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES
Trading on beef variety meats was slow to moderate this week. On sausage materials markets, heavy
offerings of cheek meat pressured that market moderately lower early on good demand from traders at the
lower prices. However, inventories tightened late week and prices rebounded to finish at modestly higher
levels. Hearts, in light trading, remained at steady levels. Head meat went untested on light demand and
offerings. On other markets, light demand for moderate offerings pressured oxtails and scalded tripe prices
lower. Trepas prices trended higher for the week.
Trading on pork variety meat markets was mostly slow to moderate again this week. Markets trended
steady to lower in most cases. Demand was fairly light but the lighter harvest numbers eased supply
pressures keeping the declines minimal. On sausage materials markets, cheek meat was thinly tested and
declined slightly on light demand and mostly light to moderate offerings. Light demand from traders and
processors left the domestic heart market untested while the export market remained mostly steady in light
activity. Demand from the overseas markets was non existent.
Trading on tallows and greases was slow to moderate this week. Chicago packer tallow, renderer tallow
and choice white grease moved lower early in good volume. With the heavy supplies cleaned up, late week
trading on Chicago packer tallow rebounded to end steady and Chicago choice white grease finished
higher. Chemical demand was moderate. Central choice white grease and yellow grease ended lower on
continued light feed fat demand. The current levels of our domestic markets kept foreign tallow interests at
bay.
Protein feed supplements experienced moderate trading this week. Ruminant meat and bone meal prices
finished slightly higher Panhandle and steady to firm Central. Light cattle slaughter numbers limited
available supplies giving strength to the market. Pork meat and bone meal ended steady on moderate
demand and offerings. Tight supplies resulted in higher prices on beef and pork blood meal.
Market activity on major packer hides was slow this week. Demand and offerings were light. In light
tests, Dairy Cows and Heavy Texas Steers finished higher while Branded Steers ended slightly lower.
Beef variety meats: Check meat 2.00 higher; head meat not tested; domestic hearts steady, export 2.00
higher; lips, livers, and honeycomb tripe not tested; scalded tripe 2.50-4.50 lower; oxtails 7.00 lower; trepas
mostly 15.00 higher; feet no recent test for comparison.
Pork variety meats: neck bones steady; 30# full cut brisket bones 13.00 lower; domestic feet mostly
steady to 2.00 lower, export not tested; domestic hearts not tested, export mostly steady; cheek meat 2.00
lower; partial lean snouts not tested, snouts w/mask steady; domestic stomachs 4.00 lower; domestic green
boneless tongues 1.50 higher.
Central choice white grease .25 lower; Central yellow grease .50 lower; Chicago packer tallow <0.15
steady; Chicago renderer tallow <0.15 .50 lower; Chicago choice white grease .25-.50 higher than latest
established market; Central ruminant meat and bone meal steady to firm; Panhandle ruminant meat and
bone 1.00-2.50 higher; pork meat and bone meal generally steady; Central blood meal 16.00 higher;
Panhandle blood meal 11.00-16.00 higher; pork blood meal 30.00-40.00 higher; Dairy Cow hides 1.50 per
piece higher; Heavy Texas Steer hides mostly .50 higher; Branded Steer hides .50 per piece lower.
The average value of hide and offal for the four days ending February 16 2006 was estimated at 8.08 per
cwt., down 0.04 from last week and up 0.21 from last year.
NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS
Northeast special fed veal prices were generally steady to firmon moderate demand for light offerings.
North Central not reported due to lack of information.
Special-fed veal cut prices were mostly steady, with the exception being on chop ready racks and top
rounds. This increase was caused by food service replenishing their inventories after Valentine's Day. In
addition, supplies remained light due to limited calf numbers.
LAMB: CARCASS & PELTS
No recent comparison for the Carcass lamb Report.
Packer sorted green salted pelt prices remain steady. Trade slow to moderate, demand light to good.
Source: cattlenetwork.com
E-mail: sflanagan@sprintmail.com |
