Market Update From the West Coast Meatheads
May 14, 2017
Additional advances developed with carcass cutouts over the week, but the moves higher were not solely attributed to middle meats finding seasonal strengthening. Both ribs and loins did find higher trading ranges, but domestic Fresh 50% trimmings surged past previously set data base historical highs, and then new values of the fat trim lent support to higher cutouts. End cuts found support throughout the week as the whole muscle cut disappeared into ground beef formulations.
Rib cutouts in consecutive week posted large gains. Solid demand and very manageable spot inventory positions contributed to the increases. Choice Rib Cutout moved another $24.06/cwt higher, or 6.27%.
Beef markets continue to find seasonal support develop, especially noted with middle meats, thin meats, ground beef, and domestic fat trimmings. The Angus Beef and commodity beef markets both realized ribs and loins presently carrying cutouts higher, but also domestic Fresh 50s needed for hamburger formulations surged to data base historical highs, playing an important role with cutout values. Cash cattle markets over the recent weeks saw huge price advancements, leading to beef processors firming the spot pricing structures. This week saw a big correction lower with cash cattle sales.
The market for fresh pork products strengthened considerably this week; especially the butt and sparerib components. Seasonal influences took-hold, leaving limited quantities of spot meat available. Buyers looking for additional quantities this week reported difficulty sourcing product, while sellers with offerings sought sharp premiums.
Most listed lines in the chicken complex are fully supported if not trending higher. Whole bird and WOG supplies have tightened and prices are advancing. Cutting stock WOG quotation is the highest its been in 2 years.
Whole breasts and fronts are rated as at least steady to full steady. Boneless breast meat is in a similar position as Mother’s Day needs were generally active. Asked and paid values are within close range to listed quotations however, some sellers are attempting to push their prices higher. Wings are still snug and wanted. Tenders are improving as buyers are beginning to build inventories for upcoming promotions. Whole legs and bone-in thighs are commanding slight premiums in spots. Thigh meat and leg meat needs remain active. Leg quarters and drumsticks are rated steady to full steady.