Market Update From the West Coast Meatheads
September 29, 2018
Cutouts found stability compared to the past recent trend, finding support as rib spot market values advanced. Demand for ribs developed as buyers who were able to book, secure, and store product for forward time slots stepped into the market. Weaker spot markets in some end cuts, a few loin offerings, as well as ground beef spot sales offset the stronger rib market.
As the boxed beef market went, so it seemed went the Angus beef one. The call on ribs remained strong, helping push prices higher, in some cases, significantly. The demand for high quality beef continued to show in themarketplace and this fully supported it. Chucks turned as well, with fall roasts right around the corner. Prices, as a result, trended higher. The round complex was generally steady, but pockets of strength were noted, mostly with flats and eyes. Loins and thin meats struggled as some sellers needed to discount product to entice buyers. Coarse grinds were generally flat as well.
"Despite the robust production” is a preface that applies across the pork market in this current environment. While the harvest was at near records, expectations earlier in the year for this period were for even higher production numbers.
This means that in some situations, domestic and export commitments written under the expectation of a record harvest, but met by a smaller harvest, led to tight supplies and firmer prices. Because of this, hams, bellies, trim,loins and butts were all at least fully steady last week.
The chicken market found itself in a stagnant state with only a few items showing movement in value. The wing complex was showing real promise with trade patterns reflecting the seasonal performance expected of them.
Boneless breast meat has been in a stable position. Fresh thigh and leg meats were well balanced and sold for market-related values. Whole birds and WOGS, although unsettled, found most listed lines in stable positions.