Weekly harvest increases, still short
December 5, 2011
Here’s your Meat Market Minute for the week:
Packers held bids until late last week, but live cattle prices did not sag much while waiting; Southern trade remained in similar ranges to the previous week. Packers increased harvest by 16,000 head over that weeks’ holiday-shortened numbers, but still fell well short of the previous year. CattleFax reports that harvest will remain under previous-year levels through December, while fed cattle numbers increase. That would shift market price leverage toward the packer.
Cutout values traded softer last week despite the previous holiday-shorted production week. End meats were the biggest bargains as CAB chucks and rounds lost 2% and 3.3%, respectively, due to lower buyer interest and ample offerings. Ribs continue to be the driver of the cutout, but most buyers’ holiday needs have been booked and they are reluctant to buy additional product on the spot market at current trading levels.
Meanwhile, recent trends help explain a decrease in the supply of Certified Angus Beef (R) brand product. In mid-November, the weekly acceptance rate declined to levels last seen in 2009. The Choice/Select spread hovered in the $18 to near-$20 range while the CAB/Choice spread added another $10/cwt. of carcass.
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