Market Update From the West Coast Meatheads
June 10, 2018
Cutout values edged lower, attributed largely to rounds and ground beef struggling for support. Buyers were not aggressively seeking additional product and were content with their previously booked commitments.
As the calendar moved closer to the true start of the summer season, and as buyers booked the bulk of their needs for the upcoming holidays/celebrations, wholesale values of Angus ribs, chucks, rounds, and ground beef have faced downside risk.
Inside rounds appeared as one of the weakest sub-primals in the Angus complex. Some loins and thin meats sustained a steady to firmer tone, notably short loins, tri-tips, and briskets.
Rib values slipped slightly lower again, as demand for product eased and features were not as visible as in recent weeks. The spot market for loins remained seasonally intact for the most part, although some discounts surfaced as the week closed.
This was an unsettled week for fresh pork, as demand was still sluggish following Memorial Day. Most trade across loins, butts and ribs was roughly steady. Various products saw support as we moved closer to Father’s Day.
WOGs and whole birds continued to be the only items in the complex exhibiting ongoing strength. Sales continued regularly at full market values or better and buyer interest did not subside to any substantial degree. Boneless remained unsettled.
The undertone for select product was unchanged but well-supported, while medium and, to a lesser degree, jumbo tested for support at current price points. Some sellers held wings with slightly improved confidence due to a recent uptick in inquiries. Tenders were about steady to steady. Some players were more optimistic than others, however, with wings, reported sales were not easy to uncover. Back half of the bird items continued to test the circumstances surrounding them. On the domestic side, legs, leg quarters and leg meat descended to lower price points, in search of support.