Page 1 WEEKLY COMMODITY AT A GLANCE This Last Last Week Week Year Omaha, US No 2 Yellow Corn 6.35 6.40 5.71 CBOT Soybean 1,189.50 1,198.50 1,357.75 NYMEX Light Crude Oil 101.56 98.83 88.03 Loose Lard, Chicago Basis 0.485 0.485 0.470 Edible Tallow, Chicago Basis 0.510 0.510 0.490 Beef Trimmings, 90% Fresh 203.00 201.00 177.00 Beef Trimmings, 50% Fresh 102.50 102.50 84.00 Aust/NZ Blend Cow 90% EC Spot 206.00 205.00 193.00 USDA Drop Credit 12.37 12.39 12.44 112A 3 Ribeye Roll, Lip-On CH 590.00 632.00 480.00 116A 3 Chuck Roll, Neck-Off CH 251.00 256.00 215.00 168 3 Round, Top (Inside) CH 250.00 250.00 217.00 180 3 Strip Loin, Bnls, 0x1 CH 500.00 500.00 400.00 136 Coarse Ground 73% 194.00 190.00 163.00 **189A 4 Loin, Tenderloin, PSMO CH 900.00 940.00 790.00 Cattle-Fax, 6-State Fed Steer Price 122.00 124.25 106.42 Select Hams 20/23 74.00 72.00 70.00 Sq Cut Bellies 14/16 110.00 110.00 100.00 1/4 Trmd. Loins 21/dn 115.00 117.00 113.00 1/4 Tr Boston Butts 9/dn 113.00 119.00 104.00 Spareribs, Light, Fresh 162.00 164.00 141.00 Fresh Pork Trim (42%) 46.00 44.00 40.00 Fresh Pork Trim (72%) 72.00 72.00 74.00 Carcass Lamb Y4+55/65 370.00 370.00 297.00 Lamb Cuts, 204 Rack, 8-Rib, 7/Up 855.00 870.00 810.00 Lamb Cuts, 206 Shoulder, Cross Cut 280.00 295.00 260.00 Lamb Cuts, 232 Loin Trmd 4x4 570.00 570.00 530.00 Lamb Cuts, 234 Leg, Boneless 685.00 685.00 600.00 Carcass Veal, Hide-off, 255/315, NC 350.00 350.00 280.00 Veal Cuts, 306 Hotel Rack, 7-Rib 14/20 750.00 750.00 550.00 Veal Cuts, 310 Shoulder Clod 14/20 610.00 610.00 475.00 Veal Cuts, 332 Loin, 4x4 Trim 12/18 615.00 615.00 570.00 Veal Cuts, 348A Leg, TBS 3-Pc 24/32 1,005.00 1,005.00 915.00 Quotes represent the high side of Friday's trading range. URNER BARRY S WEEKLY INSIDER'S RED MEAT REPORT is available on Foodmarket.com and through Urner Barry s flagship service Comtell Online. FoodMarket is available for $18.00 a month. $1.98 $1.81 $1.64 $1.47 $1.10 $0.98 $0.86 $0.74 Fully Updated and Revised! Now Available! Order Yours Today! The Meat Buyer s Guide E-mail: namp@urnerbarry.com 800-932-0617 http://shop.namp.com $0.62 EST. DAILY CATTLE SLAUGHTER M T W TH F S Total TW 6 132 131 132 132 27 560 LW 5 129 128 129 126 22 539 *LY 116 127 124 129 117 26 640 EST. DAILY HOG SLAUGHTER TW 5 433 428 428 425 344 2,063 LW 3 433 432 431 427 241 1,967 *LY 416 417 419 417 407 98 2,175 EST. DAILY SHEEP SLAUGHTER TW 0 9 9 9 7 0 34 LW 0 9 10 6 7 2 34 *LY 8 7 8 9 6 0 37 EST. DAILY CALVES SLAUGHTER TW 1 4 3 3 4 0 15 LW 0 4 3 3 4 0 14 *LY 4 4 3 2 4 0 17 EST. DAILY COW & BULL SLAUGHTER F S M T W TH LW 12/23 12/24 12/26 12/27 12/28 12/29 Total 27 5 3 27 26 27 115 TW 12/30 12/31 1/2 1/3 1/4 1/5 Total 26 12 3 29 28 28 126 *LY 12 0 23 26 28 27 116 *Last Year number's are rounded. Beef Index $1.30 Pork Cutout Number 01 - Volume 05 $0.90 FOREIGN EXCHANGE RATES This Last Last Week Week Year Australia, Dollar 1.020 1.020 0.993 Mexico, Peso 13.771 13.943 12.249 Canada, Dollar 1.025 1.018 0.995 Japan, Yen 77.095 77.140 82.930 China, Yuan (RMB) 6.314 6.309 6.629 Brazil, Real 1.842 1.865 1.688 South Korea, Won 1,162.500 1,159.000 1,121.800 Taiwan, Dollar 30.220 30.277 29.275 European Union, Euro 1.271 1.298 1.293 $1.22 $1.14 $1.06 $0.98 $0.77 $0.71 $0.65 $0.60 Turkey Index Chicken Index $0.54 COLD STORAGE U.S. BEEF COLD STORAGE STOCKS (Pounds in Thousands) 11/30/10 10/31/11 11/30/11 Beef in Freezer, Bnls 371,902 356,925 375,396 Cuts 63,272 57,702 62,167 Total Beef 435,174 414,627 437,563 Data Updated: December 22, 2011 U.S. PORK COLD STORAGE STOCKS (lbs., in thousands) 11/30/10 10/31/11 11/30/11 Pork in Freezer, Picnics 5,053 8,615 10,475 Hams 101,097 134,373 94,651 Bellies 37,696 8,734 26,840 Loins 36,532 31,545 39,072 Spareribs 66,559 57,494 64,108 Butts 15,102 18,607 21,881 Trimmings 39,591 37,552 42,794 Other Pork in Freezer 84,156 104,405 103,187 Total 467,950 488,721 494,880 Veal in Freezer 5,695 3,652 3,243 Lamb & Mutton in Freezer 16,500 20,021 19,014 Total 22,195 23,673 22,257 Data Updated: December 22, 2011
Page 2 YS BEEF CUTOUT Jan-06 v. Dec-30 CHOICE SELECT NO-ROLL CAB Rib -6.10% +1.96% -0.18% -4.54% Chuck +0.62% +1.24% -0.17% +0.81% Round +0.33% +0.29% +0.19% +0.75% Loin -0.58% +1.25% +0.71% -0.78% Brisket +0.12% +1.05% +1.05% +0.46% Plate +1.29% +1.30% +1.30% +0.76% Flank +3.73% +4.59% +4.59% +2.30% Total -0.83% +1.20% +0.35% -0.58% 170 154 138 122 Cow and Bull Slaughter Source: Cattle Fax 106 $0.75 1.26 1.24 1.22 1.20 1.18 0.144 0.136 0.128 0.120 Live Cattle Cont. Front-Month Futures Drop Credit 0.112 560 520 480 440 400 $1.35 $1.20 $1.05 $0.90 106 102 Source: CME 90 98 94 208 205 202 199 196 Live Cattle, 6-State Fed Steer Price YS 50 % Trimmings BEEF Beef Production YS 90 % Trimmings BEEF COMMENTARY Demand at the start of the New Year was rather limited. Quite a few buyers were conservative with procuring for quick ship given heavier-than-expected carry over from the Christmas and New Year s holiday break. The sluggish start was not only seen for middle meats such as the rib and tenderloin, as softer undertones surfaced for some chucks and rounds as the week came to a close. LIVE CATTLE: Sale prices of market-ready cattle worked lower this week. Live cattle sold mainly at $120/cwt to $122/cwt, steady to mostly $1/cwt lower. Trade of the dressed carcass culminated at $195/cwt to $198/cwt, $5/cwt to $6/cwt down from week prior. Trade volumes reported as light to moderate. CHUCKS: The Choice Chuck primal value edged about $1.00 higher, with support derived early in the week. Prices collected for delivery in forward time slots are now seen at levels below current spot market quotes. LOINS: Choice Peeled Tenderloins remained under downward pressure. Select and No-roll tenders fared better, given the price differential from Choice product. Top butts remain an item of interest near term. RIBS: Choice Ribs continue to pose a dilemma for beef processors as product seasonally corrects. The value of the Choice Rib carcass dropped over $17 this week. ROUNDS: Round values held at steady levels, with some slight negative pressure surfacing late in the week for inside rounds. London broils cut from the inside round were apparent in feature ads to open the year, hence most product needed to support the ads was booked last month. SLAUGHTER & BEEF PRODUCTION: The weekly cattle slaughter edged higher from the week prior, but remained limited due to holiday curtailment. 560,000 were processed this week, up 21,000 head from week prior. 27,000 head were harvested on Saturday. Beef production was 3.7% increased from last week and 13.2% lower than a year ago. Average dressed weights decreased by1 lbs from last week and 8 lbs from a year ago. BONELESS BEEF: Fresh 50s were basically steady to a little firmer this week. The weighted average ended the week at $101.72/cwt up about $1.40/cwt compared to last Friday. This week s cattle slaughter was estimated 560,000 head. Fresh 90s were mostly steady this week with the exception of Wednesday when they traded at a premium. Demand was reportedly still active. 35% Select Grading percentage 710 Cattle Slaughter 32% 665 29% 620 YS BEEF CUTOUT-CH/SE SPREAD 26% 23% 2010 2011 575 530 M T W TH F TW - 0.12 0.120 0.107 0.103 *LW - 0.154 0.148 0.143 0.139 68% 65% 62% 59% 56% Choice Grading percentage 2010 2011 798 786 774 762 750 Cattle Weights *Last Weeks number's are rounded. Weekly Beef Breakdown 1600 1200 800 400 0 Last week This week Grind CH SE Trim #of loads 1 load = 40,000lb
2455 2255 2055 1855 212 208 204 200 525 475 425 375 76 75 74 73 72 112 110 109 108 PORK PRODUCTION LIVE HOGS & CUTOUT PORK COMMENTARY Hog Slaughter 1655 Dressed weights, Hogs 196 Pork Production 325 PORK PROCESSING ITEMS & RETAIL CUTS Select Hams 20/23 TL Sq. Cut Bellies 14/16 PORK CUTOUT Dec-30 Jan-06 Change Loin 23.535 22.988-0.547 Butt 9.255 9.075-0.180 Picnic 8.599 8.327-0.272 Sparerib 6.420 1 +0.081 Ham 17.223 17.521 +0.298 Belly 17.267 17.267 - Cutout Value 85.261 84.631-0.630 $1.15 $1.00 $0.85 $0.70 163 162 161 160 159 120 117 114 108 0.88 0.86 0.84 0.82 0.80 Source: CME TL Spareribs, Light, Fresh (Vacpak) Lean Hog Cont. Front-Month Futures USDA Direct Hogs, Iowa/Minnesota, Carcass Base $0.55 TL 1/4 in. Tr Boston Butts 9/dn Page 3 Production remained at high levels this week as processors continued to kill under supportive margins established before the holiday. However, after a slight decline in wholesale values and appreciation in hog prices over the course of the week, margins shrunk and business slowed to a crawl by Friday. The Yellow sheet pork carcass cutout grew weaker for much of the week, falling by nearly 1 percent with values ranging between $84.63 and $85.45/cwt. According to the Dow Jones Estimated U.S. Pork Packer Margin Index, operating margins fell sharply with values between $.92/head and $5.48/head for the week. PORK PRODUCTION: Total Pork production for the week ending January 7, 2012 was estimated at 427.9 million lbs. This was a 4.4 percent increase from last week yet 6 percent less than a year ago. Average hog weights, at 278 pounds, were one pound lighter than last week and last year. HAMS: Bone in hams saw slight premiums this week, yet with ranges forming remained relatively sideways for the session. On the top end, 20-23lb and 23-27lb hams gained 2.78 percent or $2/cwt over the course of the week. Boneless hams lost $3/cwt under diminishing demand. BELLIES: Bellies went yet another week without a print in major sizes this week. Product is noted to be available. TRIMMINGS: Trim was docile this week under light volume, however fresh 50 s managed to eke out a $2/cwt gain, while boneless picnics lost $2/cwt. Preparations for Super Bowl have yet to influence price action on spot loads, although most major pizza companies will be offering features in the upcoming weeks. RETAIL: Buyers returned from the winter holiday in on earnest on Tuesday, but from there, market activity steadily declined through Friday. There just didn t seem to be a sufficient enough level of interest in meat for spot delivery, quantities which were sometimes large, given the absence of ready export orders. As a result, weakness was detected throughout the entire loin, picnic and butt complexes. Spareribs were narrowly mixed on the week and continue to trade in wide ranges. St. Louis Rib and Loin Back Rib values held. Fully Updated & Revised! Available March 2010. Pre-order yours now! 800-932-0617 E-mail: namp@urnerbarry.com http://shop.namp.com 117 TL 1/4 in. Tr Loins 21/dn 78 Sausage Materials (TL) Trim (72%) Fr 52 Sausage Materials (TL) Trim (42%) Fr 115 75 48 113 72 44 69 40 109 66 36
Page 4 4.00 3.40 3.10 YS Carcass Lamb Y4+55/65 LAMB 3.45 3.15 2.85 2.55 YS Boxed Lamb Cuts, 206 Shoulder, Cross Cut LAMB COMMENTARY Lamb carcasses settled at steady to slightly lower price levels this week. Some discounting was noted on the racks and shoulders. The rest of the boxed cuts traded within the previously quoted price ranges. Movement was reportedly fairly light this week. 2.80 2.25 10.60 YS Boxed Lamb Cuts, 204 Rack, 8-Rib, 7/Up 7.50 YS Boxed Lamb Cuts, 232 Loin Trmd 4x4 8.90 YS Boxed Lamb Cuts, 234 Leg, Boneless 9.80 6.30 7.80 9.00 5.10 6.70 8.20 3.90 5.60 7.40 2.70 4.50 VEAL VEAL COMMENTARY 3.40 YS Carcass Veal, Hide-off, 255/315, North Central 5.80 YS Boxed Veal Cuts, 310 Shoulder Clod 14/20 Veal carcasses were reportedly unchanged this week. Trading activity was apparently limited. Most of the boxed cuts traded at steady price levels. 3.10 5.10 2.80 4.40 2.50 8.15 YS Boxed Veal Cuts, 306 Hotel Rack, 7-Rib 14/20 YS Boxed Veal Cuts, 332 Loin, 4x4 Trimmed 12/18 10.45 YS Boxed Veal Cuts, 348A Leg, TBS 3-Piece 24/32 7.05 6.20 9.95 5.95 5.90 9.45 4.85 5.60 8.95 3.75 5.30 8.45 FEEDS $9.95 Yellow, Omaha Corn No. 2 $1,700 CBOT Soybean Features 9.50 Kansas City Hard Red Wheat $8.45 $1,450 8.50 $6.95 $1,200 7.50 $5.45 $950 Source: CBOT $3.95 Source: CBOT $700 Source: KCBT 5.50 Fully Updated and Revised! Now Available! Order Yours Today! The Meat Buyer s Guide 800-932-0617
Page 5 POULTRY ENERGY 0.91 UB NE WOG Chickens Cutting Stock 3 lbs & up 1.26 UB Toms, East, Frozen 16 lbs $4.30 Diesel 0.81 1.12 $3.85 0.71 0.98 $3.40 0.61 0.84 $2.95 0.51 1.85 UB NE Jumbo Bnls/Sknls Breasts Tender Out 1.60 0.70 3.00 UB Turkey Meat - Breast, Tom, Fresh 2.55 $2.50 Source: U.S. Dept. of Energy $4.10 Gasoline $3.65 1.35 1.10 0.85 2.10 1.65 1.20 $3.20 $2.75 Source: U.S. Dept. of Energy $2.30 0.54 UB NE Leg Quarters (bulk) 1.54 UB Turkey Meat - Thigh, Fresh 0.48 1.42 0.42 1.30 0.36 1.18 0.30 1.06 The chicken complex has gradually improved over the last several days starting out 2012. Following two short kill weeks for the holidays, coupled with ongoing industry cutbacks, product availability has tightened across most points of sale. Retail demand across the country has developed better than first anticipated catching some off guard. This has lead to an active scramble to get needs covered. Wings are just plain short. Orders outweigh offerings allowing premium prices to continue in advance of our quotations. Breasts have firmed up as demand patterns quickly absorb spot loads. Cutlets have also gained strength resulting in both fresh and frozen lines to realize higher price points for near term ship dates. As for dark meat, the undertone is rated steady to full steady. Leg meat has received a renewed call with some areas of sales short of full needs. Thigh meat is stable and easily well supported. Drums, legs, and thighs, have varying degrees of attention paid to them whether it be from retail, further processing, and export outlets. The undertone of the marketplace must be rated cautiously optimistic moving into POULTRY COMMENTARY next week. For turkey there s not much attracting buyers to the table at the moment as most are reportedly suffice in their current holdings for the time being. Those items that are receiving a second look are thigh meat, MST and bone-in breasts. Here, we are finding limited availabilities overall and good demand patterns. As a result, these items are rated at least steady in most areas. Elsewhere, we ve received reports of cheaper offerings of whole wings, both fresh and frozen. These items can hardly be given away and our prices decline today as a result. In a similar position are a variety of white meats. The discrepancy here is that the supplies of these products are not necessarily long but needs remain negligible at best. Whole birds are rated unsettled while fielding only seasonal levels of activity. ALL-NEW, FULLY UPDATED Now Available! Order Yours Today! 800-932-0617 E-mail: namp@urnerbarry.com http://shop.namp.com CUSTOMIZED COVERS AVAILABLE! Contributors: Joe Muldowney - joemo@urnerbarry.com Bruce Longo - blongo@urnerbarry.com Bill Smith - bsmith@urnerbarry.com Jim Kenny - jkenny@urnerbarry.com James Serpico - jserpico@urnerbarry.com Russ Whitman - rwhitman@urnerbarry.com Russ Barton- rbarton@urnerbarry.com AJ Munger- ajmunger@urnerbarry.com Add your Logo! Call for Details! 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 www.urnerbarry.com 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.