Beef Buyers Become More Aggressive as Prices DropMon, 29 Sep 2014 20:10:18 CDT
Weekly boxed beef trade for week ending September 27th. The daily spot choice box beef cutout ended the week last Friday at $237.66 which was 6.05 lower than the previous week which makes about a $26 drop since first of August. There were 1,064 loads sold for the week in the daily box beef cutout, which was about 15 percent of the total volume and the first time over 1,000 loads in over a year.
The comprehensive or weekly average choice cutout which includes all types of sales was $240.57 which was $5.41 lower but with much better volume. The total reported box beef volume of 6,988 loads which was 688 loads more than the previous week as buyers became more aggressive as prices dropped. Exports were at 875 loads which was 265 loads better than last week and 73 percent was being shipped overseas. These weekly reported exports are predominately muscle cuts and do not include variety meat.
The formula sales were at 3,246 loads which was almost exactly the same as last week and about 46 percent of the total loads sold. The formula sales are more consistent every week. They do not change near as much as other types of sales and have the greatest influence on the average prices because they usually represent close to fifty percent of the total sales.
The out-front sales jumped to 1,112 loads which was 400 loads better than the previous week. The two largest items were briskets and chuck rolls with almost 1 million lbs for each item. The important thing was that the average prices were almost exactly the same as prices for formula sales, meaning that prices have fallen enough to encourage buyers to start booking product ahead.
The cow cutout was about $2.75 lower and the ninety percent trimmings were almost $5.00 lower with more slaughter cows starting to show up as the fall runs begin.
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