U.S. beef cut-out values were firm and held steady at week’s end on light to moderate demand and moderate offerings.
Choice cutouts were up by 74 cents US to close at $141.87 per cwt. and Select was down 32 cents, closing at $134.81. The Choice-Select spread was $7.06 Aug. 20 compared to $6 the previous week. Choice cutouts are $19.65 lower than this week last year and Select cutouts are $21.67 lower.
Choice and Select chuck, rib, and round cuts were generally steady to firm, while loin cuts trended steady to weaker. Beef trim values were weaker with moderate demand and offerings.
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The Calgary wholesale market for delivery this week received a $4 Cdn boost, trading at $166 per cwt. The Montreal wholesale market was steady at $170. The Alberta live steer price as a percentage of AAA cutout was slightly less than 54 percent, up one percent from last week.
Retail beef margins are above average but with a significant drop in pork cutouts, pork retail margins were much better. Abundant pork supplies should persist until the end of 2009 and the current wide beef-pork wholesale price spread will continue to create attractive pork retail margins until the end of the year.
Domestic packer margins have improved thanks to moderate live prices and an increase in drop credit. Byproduct values were up $7 this week and ranged from $33.50 to $80 per cwt.
