March 28, 2005

US retail trends for April seem to favour beef

Although most US market analysts just a few days ago were saying chicken could vie with beef for the lead meat in retail advertisements during April, some now are wondering if grocers aren't planning to tilt more toward beef.

The change in attitudes came about after packer buyers bought "huge" quantities of slaughter-ready cattle this week at $90.00 per hundredweight, a historically high level but steady with last week.

US Department of Agriculture figures hint at heavy bookings by packers that haven't been delivered, a Plains states market analyst said. This, along with this week's heavy purchases indicated packers may have those undelivered bookings scheduled for April delivery and April use by the retailers.

Other market analysts pointed to this week's heavy sales in the spot market, as reported by the USDA. The sales were accompanied by price cuts, but the analysts said prices did not decline as much as they had feared coming into this week, indicating stronger-than-expected buying interest.

Those spot-market purchases may be aimed at planned specials in the week following the Easter holiday, the analysts said, but prior indications of marketing plans that leaned heavily on beef for the first weekend of April make them think grocers may be itching to transition into the heavily beef-dependent grilling season as soon as possible.