NW_LS850 Des Moines, Iowa Friday, May 17, 2013 USDA LPS Market News National Carlot Meat Trade Review Week Ending: Thursday, May 16, 2013 CARCASS PRICE EQUIVALENT INDEX VALUES The carcass price equivalent index value of a Choice 600-900 lbs carcass was 2.17 higher at 191.55; Select 600-900 lbs carcass was 1.22 lower at 177.00 compared to last Friday. FABRICATED BOXED BEEF CUTS AND BEEF CUTOUT VALUE For the week, Boxed beef cutout values were firm to higher on moderate demand and light to moderate offerings. The rib and loin primals continued to trend higher while the chuck and round primals remained steady. After an April that was wetter-than-average and the coldest since 1997, according to a report released Wednesday by the National Climatic Data Center, grilling weather arrived and boxed beef prices responded. This past week, we have seen boxed beef values rise and create new records. We have also seen that there was not one individual item driving the boxed beef cutout value but that the increased value has been represented throughout the entire carcass. One exception came on Thursday when Choice flap meat had a weighted average price of $520.13 - a new daily record. Although Select cuts had a strong session, the demand for Choice cuts was evident by the Choice/Select spread being $16.06 by Thursday. Along with the warmer weather, total beef production had an effect on the boxed beef cutout value. Last week, total beef production under federal inspection was below both year ago levels and the five year average; leaving less product in the pipeline. Fed cattle grinds traded steady to firm while the blended grinds were weak to lower. Beef trimmings were weak to lower on light to moderate demand and offerings. Forward negotiated sales revealed a large consignment of Choice and Select briskets and Choice top inside rounds being traded; the briskets traded firm on Choice and higher on Select while the Choice top inside rounds traded lower when compared to the spot market. For the week: Select and Choice rib primal 5.50 to 8.50 higher; Select chuck primal 1.25 lower while Choice 1.50 higher; Select and Choice round primal .75 to 2.00 higher; Select and Choice loin primal 4.00 to 8.00 higher. Beef trimmings were 1.92 lower. Fed cattle grinds were mostly 3.00 to 6.00 higher; blended grinds generally steady to 6.50 lower. Composite of Boxed Beef Cutout Values: Choice 600/900# carcasses up 3.79 at 208.77, Select 600/900# carcasses up 1.51 at 192.71 when compared to last Friday. COW AND BULL CARCASS, BONELESS PROCESSING BEEF, CUTTER COW CUTOUT Lean boneless processing beef was mostly steady and trimmings were mixed. Demand remained light to moderate for moderate to heavy offerings. Trading was moderate. A slow start to the spring demand season and heavy domestic and import supplies continued to pressure the market. Market activity on imported beef was slow and prices were mostly weak to 2.00 lower. Weaker domestic prices and heavy import and domestic supplies continued to pressure prices. Cutter cow cutout values were weak with light to moderate demand and moderate to heavy offerings. Rib cuts were mostly higher while chuck, round and loin cuts were mixed. Flank items were lower. 100% lean items were mixed. Lean boneless beef 92-94% 1.00 to 2.00 lower; 90% mostly generally steady; 85% weak; 81% 1.00 higher; 75% unevenly steady; 65% firm to higher; Other lean percentages were not fully established. 100% lean combo items were mixed. Cutter cow carcass gross cutout value for Thursday, May 16, 2013 was estimated at $159.63 per cwt, 0.57 lower compared to last Friday. BY- PRODUCTS: VARIETY MEATS, TALLOWS, PROTEINS, AND HIDES Trading on beef varieties continued to be active this week as grinders were looking for least cost meats to fabricate sausages. While the sausage market was slow to develop this year, the quick turn to warmer weather has brought buyers to the market. The increase in demand allowed packers to push prices higher. Supplies of cheek meat, head meat and hearts had tightened coming into the week as packers had accepted lower money to keep products moving out the door. Additionally, Mexico became a willing trading partner while China and Russia continued to be absent from the market. Trading for pork variety meats mirrored the beef variety markets. Cheek meat prices moved higher this week, following the increased prices for 72% trim. Prices for export hearts remained firm. However, prices for domestic hearts slid lower on limited trade. Marketing to China continues to be spotty. Trading on tallows and greases was slow this week. In a light test, Chicago edible tallow traded at steady prices. Demand and offerings were light. Central choice white grease prices leveled off and moved up slightly from the lowest prices of last week. Improved biofuel demand fueled the increase. The export markets were quiet. Protein feed supplements experienced slow trading this week. Demand was sluggish for Central ruminant meat and bone meal. Prices moved slightly lower. Panhandle ruminant meat and bone meal markets rebounded as excess supplies were moved out last week. Prices ended the week higher. Pork meat and bone meal prices finished slightly lower. Demand was light for moderate offerings. Central blood meal finished steady while pork blood meal ended slightly lower. Demand and offerings were light. Market activity on major packer hides was mostly slow this week. Tanner resistance continued with more low bids. Demand and interest was good, but at lower prices. Packers were trying to hold their ground. With the exception of Heavy Native Steers and Branded Steers which ended steady to lower, all reported selections finished .50-1.00 lower. Beef Variety Meats: Cheek meat domestic steady, export 2.00 higher compared to most recent quote; Head meat domestic unevenly steady; Hearts domestic steady to 2.00 higher, export hearts steady. No trading reported on other beef variety meats. Pork Variety Meats: Cheek Meat 5.00-8.00 higher; Hearts domestic 1.00-3.00 lower, hearts multi slashed export steady. Other pork variety meats not tested. Central choice white grease 0.50 lower to 1.00 higher; Chicago edible tallow steady; Central meat and bone meal mostly 5.00 lower; Panhandle meat and bone meal mostly 10.00 higher; pork meat and bone meal 5.00-10.00 lower; Central blood meal steady; Pork blood meal 10.00 lower; Heavy Native Steer hides steady to 1.00 lower; Butt Branded Steer hides 0.50 lower; Dairy Cow hides .50 lower; Heavy Texas Steer hides 1.00 lower; heavy weight Heavy Texas Steer hides 1.00- 4.00 lower than most recent test; Branded Steer hides steady to 1.50 lower. The average value of hide and offal for the four days ending May 16, 2013, was estimated at 14.29 per cwt., up 0.09 from last week and up 0.64 from last year. NORTHEAST COAST AND NORTH CENTRAL VEAL CARCASS, CUTS Compared to last week: The special fed veal carcass market was mostly steady on open market calves, while packer owned calves were lower. Demand and offerings light to moderate. Harvest numbers were 1.3% higher when compared to last week's total. Dressed weights were up 2.7 pounds in the Northeast, dn .6 pounds in the North Central, with the total NE & NC being up 1.4 pounds. Special fed veal cut prices were generally steady, loin items and top rounds were higher. Veal retail featuring last week decreased. However, loin items were the leading featured item at firm prices for the Mother's Day. Wholesale demand was light to moderate for moderate offerings. LAMB: CARCASS & PELTS Carcass lamb sales for the week, as of 5/16/2013, carcasses less than 45 pounds were sharply lower on very light volume, carcasses 45-65 pounds higher on limited volume; carcasses heavier than 65 pounds were unevenly steady on moderate trade. Carcass Cutout Report was 2.09 lower compared to last week at 249.26. Pelt activity this week compared to last report: Pelt prices were steady on previously shorn pelts and a limited offering of old crop unshorn pelts. Very light demand from end-users resulted in increased supplies causing pressure on the market. Trading slow, with light to moderate demand and offerings. Old Crop unshorn pelts traded 10.50-10.75. Source: USDA Market News Service, Des Moines, IA Lucy Clark 515-284-4460 Desm.LGMN@ams.usda.gov 24 Hour recorded market information 515-284-4830 www.ams.usda.gov/mnreports/NW_LS850.txt 11:00 lmc