NW_LS850 Des Moines, Iowa Friday, March 19, 2010 USDA Market News National Carlot Meat Trade Review Week Ending: Thursday, March 18, 2010 CARCASS PRICE EQUIVALENT INDEX VALUES The carcass price equivalent index value of a Choice 600-900 lbs carcass was up 4.00 at 140.55; Select 600-900 lbs carcass up 3.67 at 138.26 compared to last Friday. FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE Boxed beef cutout values were higher on light to moderate demand and offerings. Packers seem to have begun their seasonal climb a little early this year, as weather across the country begins shifting towards spring. The result is a cutout level the industry has not seen since 2008. The loin complex saw the most dramatic price increases this week, and while the rib complex traded higher as well, room still remains for further growth. Chuck and round movement were unimpressive, but their prices also served to support the cutout. Forward business saw large consignments of inside rounds and side off insides at prices consistent with the spot market. Beef trimmings were generally steady again this week on light to moderate demand and mostly light offerings. Fed cattle grinds were generally steady on light to moderate demand and offerings. For the week: Select and Choice rib primal 4.00 to 5.00 higher; Select and Choice chuck and round primals 2.00 to 3.00 higher; Select and Choice loin primal 10.00 to 13.00 higher; Beef trimmings generally steady; Fed and blended cattle grinds mostly steady. Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 5.23 at 154.87; Select 600/900# carcasses up 4.48 at 152.98. COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT Lean boneless processing beef prices were mixed this week on moderate to heavy offerings. Trading was moderate with moderate demand. Prices were weak early but firmed by week’s end. Stronger than anticipated Lenten season demand and improved food service demand supported the market. Early week market activity on imported beef was slow to moderate and prices were mostly firm to 1.00 higher compared to the last market test. Outfront sales were weak to 2.00 lower on a light test. Supplies of imported product remained light. Cow cuts were higher on moderate to good demand and moderate offerings. Chuck cuts were mostly slightly higher while round cuts finished mixed. Rib and loin cuts were moderately to sharply higher. 100% lean items were higher. Lean boneless beef 92-94% mostly weak to 1.00 lower; 90% unevenly steady; 85% unevenly steady; 81% 1.00 to 2.00 lower; 75% firm to 1.00 higher; 65% mostly steady to weak; Other lean percentages not fully established. 100% lean combo items were mixed; Cutter cow carcass gross cutout value for Thursday, March 18, 2010 was estimated at 121.41 per cwt, up 0.56 when compared to last Friday. CARLOT PORK AND PORK CARCASS CUTOUT VALUE Bone-in loins continued to trade at relatively steady levels throughout the week as both sides of the trade were content. Trading levels for butts moved higher daily with domestic and export demand being the driving forces along with mostly limited supplies. Bone-in ham price levels continue their downward trend, in response to reduced interest from processors while harvest rates remain at a steady pace. Ham processors had good bought position throughout the week while most set on the side lines and worked from their established inventories rather than buy. Seedless bellies were fairly inactive with only a couple of loads trading first higher then lower which confused buyers. Bacon slicers are working normal forty hour production week as retail demand for bacon is lower while most of their production is food service orientated. Lean trim price levels dipped as sellers needed to move fresh from the already full pipeline with light to moderate demand and mostly moderate offerings. Frozen lean trim was the most interesting as a couple of large packages moved mid- week as sellers clean out their freezer inventories in an effort to make room for more fresh. Fresh bone-in loins generally steady; butts 5.00-8.00 higher; spareribs steady; skinned hams 17-20 lbs 7.00 lower, 20-23 lbs 9.00 lower, 23-27 lbs mostly 5.00 lower; seedless bellies 14-16 lbs no comparison; 42% trimmings 5.00-11.00 lower; 72% trimmings 5.00-6.00 lower; boneless picnic 4.00 lower. The composite cutout value of 53-54% 200 lbs. hog carcass was estimated at $72.68 per cwt. dn 1.15 from last Friday. BY-PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES Trading on variety meats was very slow this week as buyer interest was extremely light. The one exception was for beef hearts where buyers were actively seeking product and offering were limited which caused hearts to end the week higher. In contrast, pork cheek meat traded at sharply lower prices following the trimming market coupled with heavy offerings and light demand. Market activity on tallows and greases was slow this week. Chicago packer tallow ended higher on good demand from the chemical sector. Offerings were light to moderate. Chicago lard also ended the week higher. Demand was moderate for light offerings. Central choice white grease prices moved higher early. However, late week resistance brought in some sales at lower money. Good demand pushed prices higher on Central yellow grease. The Gulf markets were quiet. Trading on protein feed supplements was slow throughout the week. Buyer resistance held prices steady on the pork and Panhandle meat and bone meal and resulted in steady to lower prices Central. Offerings were light to moderate. Pork blood meal ended generally steady. Demand and offerings were light. Major packer hides experienced another week of slow trading. Light offerings, well sold forward positions and light to moderate demand prompted another round of higher prices. In mostly light tests, Heavy Native Steers, Dairy Cows, Heavy Texas Steers and Branded Steers finished the week higher. Beef variety meats: domestic hearts 3.00 higher, export 1.00 higher. Pork variety meats: cheek meat 15.00 lower; domestic hearts steady; hocks 7.00 higher; small box stomachs steady. Central choice white grease 1.00 higher to .75 lower; Central yellow grease 1.25-1.50 higher; Chicago packer bleachable tallow .50 higher; Chicago lard 1.00 higher; Central meat and bone meal steady to 10.00 lower; Panhandle meat and bone meal steady; pork meat and bone meal steady; pork blood meal generally steady; Heavy Native Steer hides 1.00-2.00 per piece higher; Dairy Cow hides 3.50 per piece higher; Heavy Texas Steer hides 1.50 higher; Branded Steer hides 1.00-2.00 higher. The average value of hide and offal for the four days ending March 18, 2010 was estimated at 10.19 per cwt., up 0.04 from last week and up 4.47 from last year. NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS The special fed veal carcass weighted average composite price was 1.47 higher on light to moderate offerings and moderate to good demand. Harvest numbers compared to last week were nearly 4% lower. Dressed weights were down 6.2 pounds in the Northeast, up 3.4 pounds in the North Central area, with the composite down 1.3 pounds compared to last week. Special fed veal cut prices were mostly steady, with a few cuts firm. Movement slow with light to moderate demand and heavy supply. LAMB: CARCASS & PELTS Carcass lambs sales for the week, as of 3/18/2010 were mixed, mostly higher, with 45#'s and down trending lower; 45-55#’s trending higher; 55#’s and up trending 2.18-3.65 higher. Packer sorted green salted pelts remain steady to firm. Supplies continue to diminish both in the U.S. and Australia, resulting in a decline of available high quality pelts and wools. The more desirable pelts and wools are in good demand, giving sellers the upper hand in the market. Source: USDA Market News, Des Moines, IA 515-284-4460 http://www.ams.usda.gov/mnreports/nw_ls850.txt 10:00c lmc .