Weekly Boxed Beef Trade Slides Lower on the WeekMon, 05 May 2014 15:52:00 CDT
Ed Czerwien of the USDA's Amarillo, Texas, office reports on the trends in last week's boxed beef trade:
The daily spot choice boxed beef cutout ended the week last Friday at $228.38 which was $4.45 lower than the previous week. There were 808 loads sold for the week in the daily boxed beef cutout, which was about 12 percent of the total volume.
The comprehensive or weekly average choice cutout which includes all types of sales was $230.17 which was $2.03 higher and the volume improved slightly.
The total reported boxed beef volume was 6,814 loads which was 496 loads higher than the previous week which had seen that large drop in volume.
Exports were at 869 loads which was 76 loads less than last week and about 12 percent of total sales. The formula trade was at 3,489 loads which was 176 loads more than last week. It was about 51 percent of the total loads sold contributing to the increase in the weekly average choice cutout even though the daily spot or negotiated prices dropped during most of the week.
The out-front sales improved to 1,063 loads which was 104 loads higher than the previous week but over 400 loads less than last year. There were very large sales for briskets with over 4 million pounds of choice and select briskets sold at $42-$49 below the current formula trade but only a half million poundss of short loin middle meats sold at $74 over the current formula trade. The lack of out front trade activity for middle meat steak products for grilling exemplifies the wait and see/hand to mouth type attitude and unwillingness of buyers to gamble on what they might be able to sell at current prices, until they are sure that they need it.
In the spot trade for the primal cuts, the prices showed normal seasonal trends with middle meats improving due to grilling and end cuts declining. The outside primals, which are the rounds and chucks, were $1 to $5 lower. The middle meats--the ribs and loins--were mostly steady to $5 higher but choice ribs were weaker which is a little unusual.
The cow cutout was about 3.25 lower influenced by the 6.4 decline in the 90-percent trimmings.
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