Market Update From the West Coast Meatheads
June 16, 2018
Beef processors struggled with rib and loin offerings, as demand eased in seasonal fashion. Buyers remained conservative with spot market purchasing. The round primal continued to show weakness, as inside rounds and flats devalued. Ground beef processors looked at less-than-hoped-for results with their sales and wholesale values.
Middle meats realized a fairly strong pullback from the seasonal highs recently achieved. Angus rib and loin values depreciated over the week, as the bulk of the buying sector seemed content with commitments.
The Angus round complex remained under negative pressure; most cuts from that primal reached or nearly reached 52-week lows. Chucks last week saw a mixed market, with chuck rolls edging higher and clods slipping lower. Angus ground beef values closed mostly at lower levels, as the call to the ground beef processor fell short of existing supply.
The pork cutout continued to be far outpaced by hog values, with gains in ribs, trim and bellies still not enough to prevent negative margins. Domestic interest for loins and butts was sluggish and availability was fully adequate as a result.
Boneless breasts exhibit a more balanced set of market conditions as buyers increasingly showed more willingness to absorb offerings at market values with less haggling. Tenders received a renewed interest across all sizes. Current availability was no better than adequate to keep up with spot market demand. Wings were well-maintained with foodservice inquiries picking up. Whole birds and WOGS enjoyed support at quoted values. Buyer demand challenged available supplies.