Market Update From the West Coast Meatheads
May 21, 2017
Beef processors saw margins climb higher into very positive territory, as seasonal demand for the rib carried carcass cutouts higher. A large contributor to the higher carcass values was also domestic fat trimming values moving well past previously recorded database highs. End cuts in the early stages of the week held steady, but as the week progressed, price breaks began to surface.
Choice, Select, and no-roll rib primal cutouts have posted week-over-week gains. The Choice rib primal gained another $13.21/cwt this week, a 3.24% gain.
Demand for ground beef has remained strong in advance of the Memorial Day holiday coming up next weekend.
After a sustained run-up with wholesale values of beef and carcass cutouts, including the Angus Beef complex, some price breaks have now surfaced. While ribs, some thin meats, and ground beef continue to receive a fairly strong call in advance of the Memorial Day holiday, end cuts and loin meat saw spot values start to edge lower. During consecutive weeks in the cash cattle markets, packers have paid lower money for front-end supply.
The market for fresh pork products was well supported this week because of ongoing seasonal demand ahead of Memorial Day, which has left thin inventories of spot meat.
Almost every item in the complex has moved higher in value this week. Supplies remained especially snug as bird weights continued to moderate or trend lower and demand has been seasonally active. Whole birds and WOGs are booked far in advance at sharp premiums. Whole breasts and fronts rated full steady. Boneless breast meat, tenders and wings continue to move with ease. Asked and paid values are firm. Breast trim and chunk meat are following suit. Whole legs and bone-in thighs are receiving an active call as thigh meat and leg meat deboners are running at full capacity. Leg quarters and drumsticks are fair and trading at market related levels.