2017 $2.80. J F M A M J J A S O N D Source: Urner Barry J F M A M J J A S O N D EST. DAILY CATTLE SLAUGHTER

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1 Friday, January 2, Page 1 WEEKLY COMMODITY AT A GLANCE This Last Last Week Week Year UB Beef Index $2. $2.45 Friday, January 2, Number 4- Volume 1 Omaha, US No 2 Yellow Corn $2.1 CBOT Soybean 1, , $1.5 $.9 NYMEX Light Crude Oil $1.4 $.45 Loose Lard, Chicago Basis.3.3 UNQ J F M A Edible Tallow, Chicago Basis UNQ M J J A S O N D Beef Trimmings, 9% Fresh UB Pork Cutout UB Chicken Index Beef Trimmings, 5% Fresh Aust/NZ Blend Cow 9% EC Spot $. $.5 USDA Drop Credit $. A 3 Ribeye Roll, Lip-On CH $.63 $ A 3 Chuck Roll, Neck-Off CH Round, Top (Inside) CH J F M A 1 3 Strip Loin, Bnls, x1 CH M J J A S O N D 136 Coarse Ground 1% EST. DAILY CATTLE SLAUGHTER FOREIGN EXCHANGE RATES 19A 4 Loin, Tenderloin, PSMO CH ,35. M T W TH F S This Last Last Cattle-Fax, 6-State Fed Steer Price Week Week Year Select Hams 2/23 Sq Cut Bellies 14/ *LY Australia, Dollar Mexico, Peso /4 Trmd. Loins 21/dn EST. DAILY HOG SLAUGHTER Canada, Dollar /4 Tr Boston Butts 9/dn ,36 Japan, Yen Spareribs, Light, Fresh Fresh Pork Trim (42%) *LY ,329 2,32 China, Yuan (RMB) Brazil, Real Fresh Pork Trim (2%) EST. DAILY SHEEP SLAUGHTER South Korea, Won 1,1. 1,15. 1,2. Carcass Lamb Y4+55/65 Lamb Cuts, 24 Rack, -Rib, /Up Taiwan, Dollar European Union, Euro Lamb Cuts, 26 Shoulder, Cross Cut *LY COLD STORAGE STOCKS Lamb Cuts, 232 Loin Trmd 4x EST. DAILY CALVES SLAUGHTER (Pounds in Thousands) 12/31/15 11/3/16 12/31/16 Lamb Cuts, 234 Leg, Boneless Beef in Freezer, Bnls 43,96 493, ,94 Carcass Veal, Hide-off, 255/315, NC Cuts 3,55 3,55 41,54 Veal Cuts, 36 Hotel Rack, -Rib 14/2.. 1,. *LY Beef 512,524 53,953 56,2 Veal Cuts, 31 Shoulder Clod 14/ EST. DAILY COW & BULL SLAUGHTER PORK & OTHER 11/3/16 1/31/16 11/3/16 Veal Cuts, 332 Loin, 4x4 Trim 12/ F S M T W TH Pork in Freezer, Picnics 1,92 11,294,9 Veal Cuts, 34A Leg, TBS 3-Pc 24/32 1,12. 1,12. 1,2. 1/13 1/14 1/16 1/1 1/1 1/19 Hams 19,42 191,43 15,622 Quotes represent the high side of Friday's trading range Bellies 41,16 2,36 1,56 RIEMANN CONTRACT SETTLEMENTS 1/2 1/21 1/23 1/24 1/25 1/26 Loins 44,33 36,219 4,65 1/2 1/2 1/ Spareribs 11,14 9,916 19,29 Weekly Imported Aust/NZ *LY Butts 1,9 19,351 21, Blend Cow 9% EC :45 *Last Year's numbers are rounded Trimmings 36,932 31,3 35,129 Weekly Weighted Average Other Pork in Freezer 91,91,655 3, Blended Boxed Beef Cutout 56,915 59,95 52,336 Veal in Freezer Lamb & Mutton in Freezer 6,56 44,693 51,269 11, 29,439 41,29,51 21,6 29,45 UB Turkey Index $2.25 $1. Data Updated: January 24, Urner Barry. All rights reserved. This publication is protected by USA Federal copyright law. Please do not copy or redistribute this information.

2 Page 2 Rib UB BEEF CUTOUT Jan-2 v. Jan-2 Round.21% CHOICE SELECT NO-ROLL CAB.13%.35%.43% -.66% Chuck -1.4% -1.16% -1.5% -1.33% Loin.1% 1.6% Brisket 3.94% Plate 1.51% 1.4% Flank 4.1% $/cwt.64% -.14%.33% 1.% -.5%.1% 3.94% 3.94% 1.% 1.4%.9% 3.3% 3.% 4.23%.9%.6%.39% Live Cattle, 6-State Fed Steer Price $1.6 $1.4 $. Source: Cattle Fax Live Cattle Cont. Front-Month Futures $1.24 $1.215 $1.19 $1.165 $1.14 Drop Credit $.15 $.13 $.11 $.9 $. Source: USDA UB 5 % Trimmings $. $.55 UB 9 % Trimmings $2.2 $2.15 $2.9 $2.4 $1.9 Million lbs. Cow and Bull Slaughter Thousand Head/Week Beef Production Cattle Slaughter Thousand Head/Week lbs Select Grading Percentage 25% 23% 2% 1% 15% Choice Grading Percentage 4% 2% 69% 6% 64% Cattle Weights BEEF Friday, January 2, Trading interest for spot product this week lacked enthusiasm. A mix of both discounted and advancing price movements developed, with packers adjusting their offerings based on pre-sold positions and spot demand. The USDA s monthly cattle-on-feed report released Friday afternoon showed the number cattle ON FEED as of Jan. 1 at.3% above a year ago. PLACEMENTS in December were reported at 1.6% over a year ago. MARKETINGS in December were up 6.% from year ago despite one less workday in the month vs 215. LIVE CATTLE: After the mid-week Fed Cattle Online Auction saw steady to slightly higher range of sales from week prior, the weekly cash cattle market was unable to duplicate the firmer sales and trade ranges were steady to lower from previous week. The live animal offered in the cash market sold in a full range between $11/ cwt to $122/cwt, most selling between $121/ cwt and $122/cwt. Dressed carcass sales this week were mainly spread between $193/cwt and $194/cwt, also steady/slightly weaker from last established sales. SLAUGHTER & BEEF PRODUCTION: The weekly F.I. Slaughter was assessed at 5, head, up, head from week prior. Live cattle weights reported at 131 pounds, unchanged from week-ago. Dressed cattle weights averaged 34 pounds, one pound lighter from week prior s average weight. RIBS: The spot market for ribs this week was rather ordinary. Rib primal cutout values edged slightly higher. CHUCKS: Chuck values were unable to hold steady. Wholesale inventory was a bit more available, leading to discounting for spot shipment. ROUNDS: Mixed market sentiments popped up this week for rounds. Knuckles found support as did the inside round to some extent. Flats and eyes struggled a bit. LOINS: Thin meats from the loin section propped up the loin cutout. Top butts correcting to seasonal norms also bolstered the primal value. GROUND BEEF: A slightly negative bias hovered over the ground beef complex this week. Fatter blends were seeing discounting. BONELESS BEEF: While slightly higher than last week, slaughter was generally under expectations which contributed to a firm undertone on fresh 5s. The market for leaner boneless beef was fairly stable with daily weighted averages fluctuating between $2-29/cwt. for most of the week. UB BEEF CUTOUT-CH/SE SPREAD ($/cwt) M T W TH F * BEEF PORK COMMENTARY BEEF *Last Week's numbers are rounded Weekly Beef Breakdown (# of loads) Last week load = 4, lbs. This week Trim Grind SE CH Urner Barry. All rights reserved. This publication is protected by USA Federal copyright law. Please do not copy or redistribute this information.

3 Thousand Head/Week lbs. Million lbs. Friday, January 2, PORK PRODUCTION Hog Slaughter 2,65 2,4 2,15 1,9 1,65 Dressed weights, Hogs Pork Production LIVE HOGS & CUTOUT PORK CUTOUT Jan-2 Jan-2 Change Loin Butt Picnic Sparerib Ham Belly Cutout Value $.1 $.62 $.59 PORK PROCESSING ITEMS & RETAIL PORK PROCESSING CUTS ITEMS & RETAIL CUTS UB Select Hams 2/23 UB TL Spareribs, Light, Fresh (Vacpak) $.6 $.64 $.56 $.52 UB TL Sq. Cut Bellies 14/16 $1.65 $1.55 $1.45 $1.25 Lean Hog Cont. Front-Month Futures USDA Direct Hogs, Iowa/Minnesota, Carcass Base $.95 $. $.35 $1.31 $1.29 $1.2 $1.25 $1.23 UB TL 1/4 in. Tr Boston Butts 9/dn $1.5 $.95 $.5 PORK COMMENTARY Page 3 The pork cutout gained on the week, but on the back of a select few items. Bellies appeared to almost single handedly raise the cutout, leading to margins which increased from $2.2 last Friday to $33.2/head today. PORK PRODUCTION: pork production for the week ending January 2, was estimated at 53. million lbs. This was 2.2 percent over the previous week, and 1.9 percent higher than a year ago. Average live weights, at 24 pounds, were one pound higher than last week and even with last year. GREEN MEATS: After being heavily discounted earlier this month, bone-in hams enjoyed renewed interest this week. Boneless traded moderately lower with the spread between boneins and boneless remaining quite large. Bellies stole the show this week, gaining aggressively on severely thin availability. Trimmings were mixed to lower on the week. HAMS: Bone-in ham values were to $.5/cwt higher while boneless closed $2.5/ cwt lower. BELLIES: Square-cut and skinless bellies gained $2. to $32.5/cwt this week. TRIMMINGS: Fresh 42s closed $.5/cwt lower on average while fresh 2s declined by and boneless picnics lost /cwt. RETAIL: The market for fresh pork products was quite unsettled this week; with many product groups void of a clear pricing trend. Trade was characterized somewhat dull and uninspiring, with market participants throughout the chain reporting a quieted demand. The only clear pricing trend this week was the continual weakness in boneless loin products and cushion meat. Bone-in loins were a mixed-bag, with the light variety declining and medium selections gaining $2./cwt on average this week. Bone-in centers firmed to / cwt, while ample supplies of boneless centers resulted in a sharp decline in the range of $12. to $15.5/cwt. The balance of the loin complex was stronger. Picnics gained, while cushion values fell sharply. Cushion meat was amply supplied. The butt market lacked real direction. Spareribs gained before losing steam late week; supported by ongoing manufacturing activity. St. Louis Ribs ranged steady/weak and Loin Back Ribs steady/firm; contributing to the unsettled nature of the marketplace. UB TL 1/4 in. Tr Loins 21/dn UB Pork Trim (2%) Fr TL UB Pork Trim (42%) Fr TL $.99 $.2 $.94 $.2 $.26 $.9 $.6 $.24 $.4 $.22 $.9 $.61 $.2 Urner Barry. All rights reserved. This publication is protected by USA Federal copyright law. Please do not copy or redistribute this information.

4 Page 4 Friday, January 2, UB Carcass Lamb Y4+55/65 $3.6 $3.4 $3.3 LAMB UB Boxed Lamb Cuts, 26 Shoulder, Cross Cut $3.1 $3. $2.9 $2. LAMB COMMENTARY Lamb carcasses ended the week with about steady undertones. Trading activity was limited. Sentiments for lamb cuts were mixed Friday. $3.2 $2. UB Boxed Lamb Cuts, 24 Rack, -Rib, /Up $.9 UB Boxed Lamb Cuts, 232 Loin Trmd 4x4 $5. UB Boxed Lamb Cuts, 234 Leg, Boneless $5. $.5 $5.6 $5.55 $.1 $. $5.2 $5.25 $.3 $5.1 UB Carcass Veal, Hide-off, 255/315, North Central $5.5 $4.5 VEAL UB Boxed Veal Cuts, 31 Shoulder Clod 14/2 $.55 $.45 VEAL COMMENTARY Veal carcasses traded within the previously quoted price ranges. Boxed veal cuts were mostly steady. Movement was a little more active in some areas. $4. $.35 $3.25 $.25 $2.5 $.15 UB Boxed Veal Cuts, 36 Hotel Rack, -Rib 14/2 $13. UB Boxed Veal Cuts, 332 Loin, 4x4 Trimmed 12/1 $.5 UB Boxed Veal Cuts, 34A Leg, TBS 3-Piece 24/32 $13.3 $11. $.9 $12. $9. $.3 $12.1 $. $6. $11.5 $6.1 $1.9 FEEDS: CORN, SOY BEAN, RED WHEAT Yellow, Omaha Corn No. 2 $4.4 CBOT Soybean Features $1,2 Kansas City Hard Red Wheat $6.4 $/bushel $3.95 $3.5 $2.6 cents/bushel $1,1 $1, $9 $ J F M A M J J A S O N D $/bushel $4.4 $3.4 $2.4 J F M Source: KCBT A M J J A S O N D shop.meatbuyersguide.com Includes all USDA revisions to the IMPS 4 updated cuts 5 new photos CUSTOM COVERS AVAILABLE Urner Barry. All rights reserved. This publication is protected by USA Federal copyright law. Please do not copy or redistribute this information.

5 Page 5 Friday, January 2, POULTRY PORK ENERGY COMMENTARY UB NE WOG Chickens Cutting Stock 3 lbs & up $. UB Toms, East, Frozen 16 lbs $1.46 $1.33 $/Gallon Diesel $3. $2.5 $1. $2. $.94 Source: U.S. Dept. of Energy, Urner Barry UB NE Jumbo Bnls/Sknls Breasts Tender Out $1.95 $1.65 UB Turkey Meat - Breast, Tom, Fresh $6.5 $/Gallon Gasoline $3.1 $2. $2.3 $1.5 $2. $1.9 Source: U.S. Dept. of Energy, Urner Barry UB NE Leg Quarters (bulk) UB Turkey Meat - Thigh, Fresh $1. $.3 $1.3 $.2 $1.1 $.1 $.9 The chicken market is heading into the weekend in supported fashion. Tenders are the firmest item on the sheet. Offerings were limited all week and prices continue to trend higher. According to sources, further processing needs have remained stout since the holidays. Trim meat is rated steady to full steady. Supplies range from adequate to short depending on the plant. Sellers of fresh trim meat, who have nothing to show, have been adamant all week that the market is understated. While there may be some truth to that notion, sales continue to be confirmed at prices consistent with our current quotations. Wing reports were a bit mixed this week, but as a rule our sheet is fully supported. Supply and demand are still in a close balance with one another and paid prices are no worse than market related. Whole birds, WOGs, and breast meat were fair heading into the weekend. In the dark meat complex, not much has changed from a supply and demand perspective. Bone-in dark meat items continue to command market related values. Thigh meat and leg meat are rated about steady at best. During our canvassing efforts this week, there was very little activity taking place that might impact the market s complexion. The final full week of January finds demand patterns to pretty POULTRY COMMENTARY much be as expected. When coupled with the real or imaginary business prompting industry event next week, along with the travel and behind closed doors meetings that go with it, trade is noticeably subdued. Offerings of whole birds are adequate for needs and asked prices are being recorded in a range of values which have broadened a bit for future ship dates. Although not vocal, participants in the institutional breast segment paint an unsettled scenario, particularly as it is forced to relate to the breast meat market. Irregular offerings are made from all the usual points of sale and the prices associated with them are inconsistent as well. When all is said and done a range of steady to lower values are paid and select quotations have retreated to better represent market value. Breast meat is adequate to at least adequate. Frozen breast meat demand is better than fresh and prices are fairly stable. Thigh meat is mixed and mostly in good shape. Fresh drums and punched drum meat are pursued somewhat actively while frozen tom and hen drums receive inquiries but not to the same degree. Whole wings are in decent shape. shop.meatbuyersguide.com CUSTOM COVERS AVAILABLE Contributors: Joe Muldowney - joemo@urnerbarry.com Bruce Longo - blongo@urnerbarry.com Bill Smith - bsmith@urnerbarry.com Jim Kenny - jkenny@urnerbarry.com Russ Whitman - rwhitman@urnerbarry.com Terence Wells - twells@urnerbarry.com Russ Barton- rbarton@urnerbarry.com Gary Morrison- gmorrison@urnerbarry.com This report is offered to you conditioned on your acceptance without modification of the terms, conditions, and notices contained herein. Please read the End-User License Agreement (the Agreement), a copy of which is available at before utilizing this Urner Barry product. Your use of a particular UB Product(s) may also be subject to additional terms set forth in the Agreement. Your use of the UB Product(s) constitutes your acceptance of all of the terms, conditions, and notices set forth in the Agreement. Urner Barry reserves the right to amend, remove, or add to these terms, conditions and notices at any time without notice. Accordingly please continue to review the Agreement whenever accessing or using the UB Product(s). If at any time you do not accept the Agreement along with the terms and conditions outlined in the Services and Products Order Form, you may not use this or any UB Product. Commodity Indecies, Cattle Fax, Daily Beef Quotations, Daily Pork Quotations, Daily Lamb & Veal Quotations, Daily Poultry Quotations, Beef and Pork Futures, USDA Direct Hogs, are quoted in $/lb; USDA Slaughter is quoted as Head in Thousands; USDA Production is quoted as Pounds in Millions; USDA Weights are quoted in Pounds; USDA Drop credit is quoted in $/cwt live; Feeds are quoted in $/Bushel; Gasoline & Diesel are quoted in Cents/Gallon. Urner Barry. All rights reserved. This publication is protected by USA Federal copyright law. Please do not copy or redistribute this information.