Beef market setback may spur featuring
Here’s your weekly meat market minute:
Most live cattle trade occurred at $122/cwt last week, $3.80 below the previous. Decreases in spot cash values ran over into the Futures market by mid-week (Wednesday) as continued pressure was applied by losses seen in the 50CL or 50% lean trimmings market. According to Cattle Buyers Weekly, 50CL values were noted at $82.94 the week of 3/19, but fell to $54.08 last week. Some estimates show the impact as a loss of $3.20/cwt or $40/head live — could ultimately lose up to $10/cwt on this decline.
Although buyers were able to reduce cattle costs, packers continue to give up operating margins becasue boxed values again slipped on poor demand. Easter week typically doesn’t bode well for demand of red meat, and that was seen across the industry as all grades gave up significant ground. CAB end meats continue to trade at levels well below the previous year but middles are in similar ranges to 2011. Moving forward, many retail buyers are optimistic for red meat features given current price levels.
Until we meat again,
-David
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