Headline summary:

• Beef prices continue to rise in US
• Meat prices support third highest yearly average FAO food price index on record
• Tallow and hides boost potential co-product values
• Friday daily livestock summary

Beef prices continue to rise in US

13 Jan 2014

In general, wholesale beef prices in the US have had a strong start to the year, with end users chasing limited supplies. As at 10 January, the Urner Barry Yellow Sheet prices for all reported cut-out beef values, including Choice, Select and CAB grades, were notably higher, averaging a 4–5pc increase on the week before. Some of this jump was also attributed to disruption of supplies due to the widespread cold weather. Besides the cut-out values, trim prices also increased substantially, especially for fresh 50CL manufacturing beef, which was 12pc dearer than the previous week.

Large increases were recorded in the wholesale lamb market through November, but have held relatively steady since early December. Similar to beef, some trading was affected by the large cold snap across the north-east of the US – which is the largest lamb consumption region.

The poultry and pork markets have held relatively steady in the last month or so, and did not appear to be as affected by the weather as the red meats. The lack of significant price rises in poultry and pork in recent months suggests they will remain cheap relative to beef, potentially affecting the demand mix for protein, especially in lower-income households. Beef supplies are still expected to clear shelves, but they are likely to hit a price ceiling at some point in the near future.

Source: MLA

Meat prices support third highest yearly FAO food price index on record

13 Jan 2014

The Food and Agriculture Organisation (FAO) food price index for December was firm compared to November, at 206.7 points, as a large increase in dairy prices and small increase in meat values counteracted a steep decline in sugar, cereal and vegetable oil prices.

The FAO 2013 food price index averaged 209.9 points, down 1.6pc on 2012 – however, still the third highest annual average on record. Record dairy and meat values throughout 2013 were more than offset by lower sugar, vegetable oil and cereal prices, as high supply forced prices down.

The FAO meat index averaged 188.1 points in December, 0.8 points higher than November. Reportedly, consistent demand growth from China and Japan since the middle of 2013 saw bovine and pig meat prices move higher.  In contrast, poultry prices remained firm, while sheepmeat weakened on the back of the seasonal slaughter peak in the southern-hemisphere. For 2013, the index increased to a yearly average of 184 points, up 1.1pc on 2012 – the highest yearly average on record.

Source: MLA

Tallow and hides boost potential co-product values

09 Jan 2014

The potential co-product value of a heavy steer (average carcase weight 331kg) in December was 9pc higher than that of the previous month and 20pc higher year-on-year, to average $238.75/head, largely assisted by improvements in tallow and hide prices (Kurrajong Meat Technology – December co-products monitor).

Average tallow prices were 14pc higher than those recorded in November, at $58.55/head, and lifted 22pc on the corresponding period last year. Prices rose following a fall in production throughout December, with exporters competing to secure tallow supplies before the New Year.

Prices for hides gained 9pc on November, and were 64pc higher year-on-year, with averages at $88/head, largely assisted by a lower A$. Prices are reportedly expected to hold firm during 2014, supported by reduced global supply and higher demand from China and South East Asia. 

Offal prices were relatively firm both month-on-month and year-on-year, averaging $62.91/head in December. Meat and bone meal prices rose 9pc from November, at $29.29/head, but slipped 15pc on the corresponding period last year. Prices eased throughout 2013, with the use of soy meal reducing export demand. However, a recent boost in demand from Indonesia has forced domestic buyers to compete for product, with prices subsequently lifting in December.  

Source: MLA

Friday daily livestock summary

10 Jan 2014

The first sale of the year at Dubbo saw some rainfall, with numbers comprising good drafts of well-finished trade cattle, along with large consignments of cows. The regular processor orders were in attendance, with most feeder orders present. Heavy weight C3 yearling steers to feeder orders averaged 172¢, while light C2 yearling heifers averaged 130¢/kg to feed. Medium C3 grown steers to feed sold between 168¢ and 175¢ this week, and medium D2 beef cow grades ranged from 70¢ to 114¢/kg.

Yardings at Bairnsdale this week met firm demand for heavy weight yearling trade steers, with a better quality penning of grown steers and bullocks offered. The usual buying group was present and operated in a mixed market. Heavy C4 yearling steers sold to slaughter orders between 175¢ and 188¢, while heavy D3 yearling heifers to processors ranged from 139¢ to 160¢/kg. Heavy D3 grown steers to slaughter averaged 160¢, and heavy D3 cows to processor buyers sold from 124¢ to 146¢/kg.

Source: MLA