Market Update From the West Coast Meatheads
Beef
The spot market held relative strength this week, but a few signs of peaking began to surface. Cutouts advanced, but the pace of gains slowed. Ribs continued to push higher, setting record highs on a daily basis. Briskets, tri-tips, and outside skirts remained items that traded ownership at either 52-week highs or historical high levels. Beef processor spot inventories remained very manageable given strong pre-sold positions and decent demand for restock after the Memorial Day holiday.
Angus Beef
Rib values continued their trek higher, now sitting at record highs. Short buyers who came out of the Memorial Day holiday looking for product to cover Father’s Day features found product was scarce and trading at historical high levels.
Loins edged higher, but not at the pace at which ribs have advanced. Chucks and rounds found some support, although product such as the clod tender and arm roast saw price breaks develop. Brisket demand has remained stout, leading to large wholesale value gains.
Pork
Fresh pork trade this week saw the deterioration of the butt market. Product became increasingly available and, in some cases, was characterized as burdensome. Foreign buying slowed after the steep holiday run-up and product landed on the domestic market; at first it was absorbed, but later overwhelmed the market. There’s ongoing support for bone-in loins and most credit retail support, while at the same time, boneless loins continued to be widely available and discounted. Sparerib values were lower on the week, however medium ribs traded off of their weekly lows. Light products were continually discounted, while mediums found late-week premiums; a combination of retail and processor demand was supportive. St. Louis Ribs ranged steady to weak post-holiday, and once again, Loin Back Ribs were unchanged.
Chicken
Most listed lines were fully supported. Whole breasts and fronts remained snug. Medium-sized breast meat is steady; select-sized is likely better than that. Jumbo-cut wings continue to receive an active call, even at these levels. Small-sized and medium-sized wings are deemed adequate to cover needs; sellers are still commanding full market values. Tenders are full steady to firm. Fresh bone-in dark meat is balanced. Thigh meat is in better shape than leg meat, but both are generally supported.