April 5, 2010

US meat industry recovers well

The month of March in 2010 will long be remembered by US meat packers as a surprisingly good recovery month, according to reports.

A prelude to upcoming Easter holiday weekend saw US beef markets holding last week's strong run-up in fed steer prices (helped by a very low 80,000 fed kill on Friday (April 2) - when packers reportedly had US$53 per/head margins). Fresh 90CL boneless Cow beef price rose a surprising 5c/lb - to around 162c/lb mid-west.

High-premium frozen imported 90CL beef price rose another 2-3 cents this week on short supply - quoted earlier in a record-high range of 168-170 cents/lb fob at port of entry, for April arrival. In line with these latter increases, the US canner cutter cow carcass cut-out value rose 3.2 cents during past week to 126cents/lb, on steady daily kills near 25,000 heads.

 
The only raw material item for grinders that softened in price was 50CL steer trim, which fell 6 cents to a level today of 85-86 cents/lb. Other parts of the fed steer carcass stayed firm to stronger, with the Choice-grade carcass cut-out quoted today at 163.8 cents/lb (up 1.2 cents) and Select-grade at 160.6 cents/lb (up 0.3 cents) - with the spread between the two grades nearly a cent wider at 3.1 cents/lb.

 
Retail beef prices are not yet reflecting these foregoing price increases. Cattle futures contract prices advanced only a cent above prior week - with confidence lacking in summer months at prices down to 91.5 cents/lb in August (live basis) - compared with 94-96 cents live cash prices today. But there was plenty of joy in feeder calf futures prices - up 4 cents this week to range 110-14 cents/lb. Other good news for cattle producers was corn and soy futures each down near 20 cents -bushel.

 
US pork cash markets bobbled during the week - under pressure of big daily kills near 430,000 head. The pork carcass cut-out value ended steady today at 72.8 cents/lb (below recent peak of 75 cents). Exports held strong.

Futures contract markets took a cue from both Chinese and Russian markets re-opening to US pork during March - and rose 2 cents this past week to a range today of 73-83 cents/lb through to June contract delivery month. In domestic pork trade, wholesale ham prices eased ahead of post-Easter slowdown, as did trimmings prices also.
 

Easter ham prices were "all over the place" in central Pennsylvania this week with many bargains, prices ranging from 49 cents up to US$5.99 for imported ham. Other retail specials for pork included butt roast 99 cents/lb, boneless loin chop US$1.99 and tenderloin US$2.99.

Retail lamb prices for Easter included US and Australian bone-in legs US$3.49/lb, Australian boneless US$4.99. Boneless skinless chicken breasts range from US$1.99 to US$2.49/lb, and US$3.99/lb for 99CL label.
 

Retail beef prices were mixed, with 90CL ground beef ranging from US$1.99/lb (on special) up to US$3.69/lb.