Agricultural News
Rib Cuts Keep Advancing as Prime Rib is a Cornerstone of Holiday Parties- The Latest Wholesale Report
Mon, 08 Dec 2014 21:25:40 CST
On a regular basis, Ed Czerwein of the USDA Market News Office in Amarillo, Texas offers a review of the previous week's boxed beef trade. Here is the weekly boxed beef trade for week ending December 6th. The daily spot choice boxed beef cutout ended the week last Friday at $252.54 which was a 4.86 lower. There were 796 loads sold for the week in the daily box beef cutout which was about 250 loads higher than last week and about 12 percent of the total volume.
Click on the LISTEN BAR below to listen to Ed's comments about the weekly boxed beef trade.
The comprehensive or weekly average choice cutout which includes all types of sales was $254.45 which was only 0.55 lower due partially to the buffering effect of formula prices, many of which are priced off of previous week's prices. The total reported box beef volume jumped as the price declined. There were 6,482 loads sold which was 564 loads higher. However this week's sales were almost 500 loads less than last year.
The formula sales were fully steady at 3,467 loads which was only 23 loads better than last week and 53 percent of the total loads sold. Being over half of the sales volume these formula sales have tremendous impact on the average prices for the week.
Exports as reported on the weekly box beef report are predominately muscle cuts and they were at 791 loads which was 140 loads better than the previous week and 153 loads were sold to our NAFTA Neighbors and 638 loads were shipped overseas.
The chuck and round primal cut prices were two to three lower and the loin was steady. However the rib prices once again increased jumping another 6 dollars to set new high prices, it has jumped 57 dollars from having a 337 average on October 3rd to 394 this past week. Like we said the last couple of weeks this rally is a normal seasonal event since prime rib is used during employee Christmas parties. However rib prices normally start dropping just as rapidly as soon as the holiday purchases are done which is normally after the second week of Dec. The rib has carried the cutout during the last six weeks because the other cuts have been mostly steady to weak.
The most recent out-front sales dropped to 779 loads, which was 106 loads lower than the previous week. Out-front sales normal jump in December as buyers book product for ad specials after the holidays.
The cow cutout was about 1.5 higher and ninety percent were over 3 higher. The cow cutout was actually at $236.81 on Friday and the Select cutout was $236.69 so they were almost exactly the same after being over ten dollars apart last week. The fall run for cows continues to be smaller than normal due to the several previous years of drought conditions and extra buyers are still picking off cows to return to the country as replacement stock.
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