Weekly Meat Market Update 2 – 6

Author: Marvale Jones

Date: February 6, 2017

Last week’s slaughter was at 569,000 head with the live cash trade at $119/Cwt. to $122/Cwt.. This week’s slaughter is projected to be around 590,000 head with current live cash at $117/Cwt. to $119/Cwt. The forward futures slipped lower on the bearish news from the cattle on feed report. Packer margins are still seen in the red, however production schedules continue at steady levels. End cuts have been holding steady but are seen under increasing pressure and beginning to slide. Grinds are just steady but have downside potential. Ribs and Loins are holding steady with good demand.

Cutout values moved slightly lower to end last week. Chuck and Round cuts moved lower due to slow demand while middle meats held about steady. This week the cutout have moved up slightly but with demand remaining slow, the cutout will most likely remain steady at best.

 

 

ROUNDS
Prices remained about steady to slightly lower on all round meats to end last week. Expect prices to remain steady or move slightly lower this week due to increasing supplies.

Insides- Prices remained about steady to end last week. This week prices are holding steady as well due to increasing supplies and slower demand.

Flats- Prices held about steady to end last week due to slow demand and increased inventory. This week prices are holding about steady to slightly lower with supplies increasing and demand slowing.

Eyes- Eyes prices remained steady last week due to slower demand and increasing supplies. Expect steady to slightly lower prices this week due to slower demand and increasing supplies.

Peeled Knuckles- Peeled Knuckles prices were about steady to end last week. Expect steady to slightly higher prices into next week due to better demand and tighter supplies.

 

LOINS
Prices remained about steady to slightly higher on all middle meats to end last week due to increasing demand and tighter supplies. Expect prices to soften slightly as inventories are growing and demand slows slightly.

Strips- Strip prices held about steady last week on Choice product due to continued good demand and tighter supplies. This week prices are starting to soften as demand is slowing due to the run up in prices the past couple weeks.

Short loins- Markets were mostly steady to slightly higher on all grades last week. This week prices are moving slightly lower due to slower demand and increasing supplies.

Top Butts-Top Butt prices remained steady to slightly higher to end last week. Expect steady to slightly higher prices due to high processor demands at lower prices.

Ball Tips- Prices remained about steady last week. Expect steady to slightly lower prices into next week as supplies increase and demand slows seasonally.

Tri Tips- Prices held about steady to slightly higher to end last week due to continued good demand and tight supplies. Expect prices to hold about steady into next week.

Tenderloins- Prices moved down slightly last week on Choice Tenders due to slower demand. This week prices are holding about steady as demand remains slow but supplies are tight. Select prices are steady with limited supplies. Expect prices to increase some next week on all grades as retail and foodservice channels increase demand to prepare for Valentine’s Day features.

 

RIBS
Prices last week moved slightly lower on all sizes of Choice and Select Ribeyes. Expect prices to move back higher due to an increase in demand before Valentine’s Day.

Ribeyes- Prices on all Choice Ribeyes moved lower slightly lower last week due to slow demand. This week prices are holding about steady or increasing slightly as supplies are tightening. Expect prices to continue to move higher into next week due to an increase in demand before Valentine’s Day.

BI Ribeye’s and 109 Ribs- Prices on all Bone-In Ribs moved slightly lower last week. Expect prices to increase slightly due to increase demand and tighter supplies.

 

CHUCKS
Prices remained mostly steady to slightly higher on all Chuck Meat to end last week. All Thin Meats held about steady to slightly higher last week as well due to increase demands for first of the month retail ads.

Chuck Rolls- Chuck Rolls held about steady to slightly higher last week due to strong retail demand and tight supplies. This week prices have moved slightly higher as well due to better demand and short supplies.

Clods- Markets were strong early last week but turned lower as the week progressed. This week prices are turning back higher due to stronger processor and retail demand for first of the month retail business.

Chuck Tenders- Prices last week were mostly steady. This week prices have moved higher due to tighter supplies and better demand from processors.

Teres Major- Prices were about steady on all grades last week due to slower demand. Expect slightly higher prices into next week due to greater demand and tight supplies.

 

THIN MEATS AND GRINDS
Flanks- Flank prices remained firm or increased slightly last week due to demand remaining strong. This week prices have held firm as well. Expect steady to higher prices next week as demand should pick up moving forward.

Flap Meat-Flap Meat prices moved slightly higher due to better demand from processors and higher cattle prices. Expect prices to remain steady to slightly higher into next week due to tighter supplies.

Briskets- Brisket prices turned lower late last week due to an increase in supplies and slower processor demand. This week prices remain on the soft side as supplies increase. We should see prices start to increase as we move into the month of February.

Skirt Meat- All skirt prices were mostly steady to slightly higher. This week prices have moved slightly higher due to limited supplies and increasing demand.
Special Trim, Blade Meat and Pectoral Meat- Prices were slightly lower last week due to increasing inventory. This week prices increased slightly due to better demand.

Grinds- Ground beef prices were strong early last week but prices turned lower on all blends as the week closed. This week prices have moved sharply lower on most blends due to heavy supplies and slower demand. Expect prices to remain soft into early next week before we see pricing start to stabilize as retailers start to feature ground beef again which will clear current inventory.

 

PORK
Last week’s harvest was at 2.367 million head on live cash cost of $63.39/cwt weighted average. This week’s kill is projected to be around 2.34 million head with live cash cost at $64.17 weighted average. Hams and lean trimmings maintain a barely steady to modestly weaker undertone on fully adequate availability. Bellies are fully steady to firm on thin availability and consistent interest.
Loins – Soft
Butts – Soft
Ribs – Steady
Hams – Just Steady
Bellies – Fully Firm

 

Loins- Bone-in Loin and Boneless Loin prices remained about steady to end last week. Expect prices to start to move lower into next week as demand slows and supplies grow.

Butts- Butt prices were steady to slightly lower last week. This week prices are also moving slightly lower with Bone-In Butts being weaker than Boneless Butts. Demand has remained soft with export demand being noticeably weaker.

Ribs- Sparerib prices were steady last week on all sizes. This week prices have increased slightly due increased demand from processors wanting to put Ribs down for the summer.

Trim– Prices ended the week about steady on leaner trim and lower on fat trim. This week prices are holding about steady but expect prices to lower slightly moving into next week as supplies grow.

Picnics– Market is lower on Boneless Picnics and sharply lower on Cushion Meat.

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