Meat Buyers Cautious with Higher Box Beef PricesTue, 01 Jul 2014 16:32:05 CDT
In the weekly boxed beef trade for week ending June 28, the daily spot choice box beef cutout ended the week last Friday at $245.98 which was 5.09 higher than the previous week. There were 650 loads sold for the week in the daily box beef cutout, which was the lowest since mid April about 10 percent of the total volume. Click on the LISTEN BAR below to hear Ed Czerwien's analysis.
The comprehensive or weekly average choice cutout which includes all types of sales was $238.13 which was 6.00 higher, and only about 40 cents lower than the all-time high set at the end of March.
The total reported box beef volume was 6,455 loads which was 429 loads less than the previous week and almost 1,300 loads less than last year. The four week moving average of box beef sales was 6,936 loads compared to 7,541 last year.
Exports were at 876 loads which was 49 loads higher than last week. The formula trade was at 3,386 loads which was about 52 percent of the total loads sold and 300 loads less than last week.
The out-front sales were 966 loads which was 158 loads less than the previous week. Mid to late June has always been one of the biggest periods for outfront sales but for the last three weeks averaged about 1,120 loads per week compared to 1,435 last year, which indicates meat buyers are more cautious.
The cow cutout which is a major source of ground beef products was about $8.39 higher at 212, which makes it about 16 higher in the last three weeks and ninety percent trimmings about $25.00 higher for the last three weeks. Slaughter cow prices normally shoot up around the fourth of July since cow runs are extremely short at this time of the year along with the increased demand for hamburger during the summer grilling season.
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