Market Update From the West Coast Meatheads
Beef
Seasonally light harvest/production continued to support boxed beef prices and cutout values. A stronger call for ribs, strips and short loins buoyed prices. End cuts took a breather for the most part, the exceptions being chuck rolls and inside rounds. Export business continued to support the spot market value of the chuck roll. Decent further processing business lent to price gains for the inside round.
Spot market values with all grades of ribs edged higher again this week. Buyers who sought inventory for the upcoming spring holidays led the increases, aided by packers who continued to rein in production.
Support for strips and short loins developed from both the supply and demand side of trading. Top butts also came into the buyers focus during the week. Thin meats from the loin section firmed as packer’s production restraint lent to higher spot market values.
Angus Beef
For the most part, Angus beef prices firmed as the cost of live cattle shot up significantly last week. In addition, harvest levels were below what was anticipated for this time of year. The gap between supply and demand widened at the top end early in the week, with traders chasing higher prices, but settled as this week progressed. Middle meats continued to be the biggest recipient of price gains. Strips and short loins really saw significant appreciation.
Interest in top butts fueled speculation that large foodservice outlets were planning sirloin features. Most chuck items traded steadily, but continued support from export markets led chuck rolls higher. Briskets were also moving, slightly earlier than normal.
Processors drove up demand for insides, while flats and eyes were plentiful and one of few items showing discounts. Ground beef was generally in balance.
Pork
The fresh pork complex actually started (very modestly) to move out of well-established ranges for a number of cuts. Bone-in and boneless loins saw substantial gains. Both bone-in and boneless butts continued to see robust support on the export front, but domestic market sales remained a struggle, which limited the potential for any meaningful gains this week.
Chicken
The chicken market was generally quiet. The exception to the rule involved the tender and wing categories. Small, medium and jumbo wings all continued to track lower in search of support as buyers tested seller confidence. Excess supply coupled with a seasonal decrease in industry needs contributed to lower values. Tenders also saw some pressure when bidders were slow to make a call. WOGs and chickens were about steady with sizes trending to the extremes in each weight class. Leg quarters were even-keeled and held with a degree of confidence. Boneless breasts remain about steady to steady this week, lacking initiative in either direction.