Not a Big Week For Retailers Buying Roasts
MORNING LIVESTOCK OUTLOOK
Compared to a week ago, cumulative Choice boxed beef prices as of Friday were down $5.24. Select boxed beef was up $2.01 for the week. Choice beef dropped because Choice primal rib sections were down $20.98 and Choice loin sections were off $6.72.
As reported earlier in the week, this week and next week are not big weeks for retailers to be buying large primal roasts. Beef roasts needed for Thanksgiving are already in the retailer’s storage. But, if rib sections and loin sections continue to move down, the near term top is in.
With ruling that packers can apply to push up kill, need to see if weights start to come down. The 5 day average for the pork carcass as of Friday was down $2.53. Loins lost $9.71, butts were down $1.12, Picnics up .31 cents, Ribs up $2.17, the yoyo hams gained $2.23 and bellies lost $3.11.
At this time there has been no resolution on the California proposal to restrict pork sales in California. Ban will begin in January. It is one reason pork may be steadily losing because there are fewer contract pork orders. California takes 15% of the US pork production. If ban actually takes place, it will be a huge hit to the pork industry.
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