Agricultural News
Shortened Holiday Week Lowers Boxed Beef Sales and Exports
Mon, 06 Jul 2015 17:55:22 CDT
On a regular basis, Ed Czerwein of the U.S. Department of Agriculture 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 July 4th. The daily spot Choice box beef cutout ended the week last Friday at $250.12 which was three dollars lower compared to last Friday. There were 522 loads sold for the week in the daily box beef cutout for the holiday shortened week. It was about ten percent of the total volume.
The comprehensive or weekly average Choice cutout which includes all types of sales including the daily spot cutout was $249.18 which was 38 cents lower. There were only 5,191 total loads sold which was 976 loads lower than the previous week and one of the smallest numbers we have seen in some time. The only week below that in recent years was the New Year's holiday week 2015. The formula sales were at 2,937 loads which was also a very small number and 604 loads lower than last week and was 56 percent of the total loads sold.
Exports as reported on the Boxed Beef report represent primarily muscle cuts and they were at 638 loads which was 133 loads lower. North American Free Trade Agreement neighbors purchased 83 loads and 555 loads were shipped overseas. Year-to-date this year during the first two quarters. we have sold about 18,800 lds of exports compared to 20,600 last year and 24,600 in 2013. These numbers as reported on the weekly box beef report do not include variety meats. The value of the dollar has increased quite a bit this year compared to the years when we had the biggest exports.
The outfront sales which won't be delivered for at least 22 days were at 690 loads which was 46 loads higher than last week. In the first two quarters, the U.S. sold about 26,000 loads outfront compared to about 29,000 lds last year. Our weekly average this year is 1002 lds compared to 1400 lds per week in 2011. Buyers have been much more cautious the last couple of years as prices have gone up, and were buying more of their product hand to mouth.
Taking a look at the weekly average primal cut prices. The Choice middle meats which are the loins and Ribs were two to five lower. The choice chuck was three higher and round was steady. These two primal cuts pushed the cutout much higher last summer. The chuck gained 39 dollars from June to August last year and the round gained 67, partially due to the products that were ground for hamburger.
The cow cutout ended the week almost steady and only 35 cents lower. The ninety percent trimmings were a dollar lower compared to the previous Friday. Like we said last week the fourth of July begins the dog days of summer when hamburgers, hot dogs and sausage become the favorite grilling items which normally supports cow prices along with steer/heifer chucks and rounds. The summer pasture season also reduces the numbers of slaughter cows which helps keep prices up and this year the southern plains has seen the best pasture conditions in many years.
The latest report of imported meat passed for entry into the US for June 27 showed that week we imported 23,190 metric tons of fresh beef which was about 1200 metric tons lower than the previous week and equates to 51 million lbs imported for that one week. Year-to-date for the first 26 weeks of this year we are still running 34 percent higher fresh beef imports than last year and that is on top of last year's jump in imports. Australia was 64 percent higher, and New Zealand was up 22 percent.
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