Market Update From the West Coast Meatheads
November 6, 2017
Carcass cutouts moved higher again as ribs, tenderloins and beef trim gained value. News broke late last week regarding a change the USDA made in camera grading of beef carcasses. The changes were made by USDA’s Quality Assessment Division, in charge of animal grading, to correct an apparent inaccurate version implemented earlier in the year. The latest adjustments made last week are anticipated to reduce the amount of choice and prime grade beef compared with the percentages seen this summer and increase the amount of select grade beef.
Ribeye values continue to advance. Wholesale inventories as very manageable given pre-sold orders. Striploin values held fairly steady, while tenderloin saw strong gains developed.
As far as trading over the past week with Angus beef processors presently are showing optimism with their wholesale offerings. Not only have they seen the typical seasonal push higher with holiday meat, but end cuts are now edging higher as colder weather sets in many regions. Angus thin meats realized mixed results. Brisket wholesale values slipped lower, as demand eased. Angus ground beef values pushed modestly higher.
Demand from domestic buyers was somewhat dull, but export supportive. The loin component was most susceptible to downside risk given their reliance on domestic retail sales, but only showed modest weakness. The loin component fell. Meanwhile, butts received a good deal of support from ongoing export activity and market values responded positively. Spareribs remained supported and up. Both St. Louis and Loin back ribs were ranged steady to higher.
WOGs were rated at least steady to full steady. Demand picked up as we’re entering a new month; prices were trending higher. The rest of the complex is pretty much stagnant. Breast meat continued to show signs of weakness, particularly jumbo meat. Sellers were attempting to put a hold on prices but most buyers were able to get covered at discounted levels. Wing demand improved, slowly, but trading levels were below the quotations. Tenders were generally supported. Bone-in thighs as well as thigh meat and leg meat continued to unravel. Whole legs, leg quarters and drumsticks were facing varying degrees of pressure as well.