Market Update From the West Coast Meatheads
October 25, 2016
Spot market trading was fairly limited this week. Loins remain the biggest issue for the beef processor. Ribs held mainly steady as the call for holiday needs has not commenced in earnest.
Ground beef quotations were largely unchanged. Angus beef markets have sustained an easy to weaker tone as industry keenly awaits the arrival of the holiday market for ribs.
Wholesale end cut and loin inventories over the past week were long for the current call which led to fairly hefty discounting for some items. A majority of thin meats were also receiving price reductions to move spot supply.
Lean hogs traded in narrow ranges and ended the week mixed. The most actively traded contracts closed within 20 cents either side of steady.
The market remains under pressure from record large supplies expected throughout the fall. December hogs ended 7.5 cents lower at $41.10, a new low for the close.
Packers quoted mostly steady prices early but some weaker bids were again also seen. USDA’s national weighted average this week was down 33c.
The regional average prices ranged from 31c to 62c lower. The terminal markets traded steady.
There’s a mountain of meat in the marketplace and it’s not just made up of chicken, its beef and pork too. Breast meat is unsettled. Sellers are entertaining discounted bids to keep product moving, especially on larger package deals. Tenders are not as plentiful as they were in recent weeks, but they’re still no better than barely steady. The same can be said for whole legs, drumsticks and thighs.
Wings are generally supported, but even here we’ve begun seeing more availability of jumbo whole wings. Cut form wings are still moving with ease. Whole birds and WOGs remain unchanged.
Supplies are no more than adequate for current needs which are fair at best. Thigh meat and leg meat are rated about steady. Spot demand is fair. Leg quarters are trending sideways for now.