Agricultural News
Big Loss in Choice Cutout Stimulates Out-Front Boxed Beef Sales
Mon, 21 Dec 2015 19:25:18 CST
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 December 19. The daily spot Choice boxed beef cutout ended the week last Friday at $194.14 which was $8.36 lower compared to previous Friday. However the Select Cutout was only 8 cents lower because the big loss in the choice cutout was the Choice Rib that takes a normal seasonal decline in mid-December.
There were 697 loads sold for the week in the daily box beef cutout compared to 836 loads previous week. It was about 11 percent of the total volume.
The comprehensive or weekly average Choice cutout which includes all types of sales including the daily spot cutout was $197.68 which was $4.46 lower.
There were 6,290 total loads sold which was 90 loads lower than the previous week. The formula sales were at 3,255 loads which was 334 loads lower than last week and was 52 percent of the total loads sold this week.
Exports as reported on the Boxed Beef report represent primarily muscle cuts and were at 625 loads which was $181 higher. Sales to North American Free Trade Agreement neighbors totaled 136 loads and 489 loads were shipped overseas.
The out-front sales which won't be delivered for at least 22 days were 1,077 loads which was 432 loads higher than last week and normally improves now as buyers book product for after the holidays.
Taking a look at the weekly average primal cut prices. The Choice middle meats which includes the rib which jumped tremendously during the last two months was $5 lower and the loin was $8 lower. The bigger loss in the Choice middle meats pushed the Choice Select spread lower. The Choice chuck and round primals were three to four lower.
The Cow Cutout was only 69 cents lower for the week on Friday at $158.15. Those 90 percent trimmings ended the week at $190.53 which was about one higher after that $17 drop the previous week.
The latest report of imported meat passed for entry into the US for week ending December 5th showed that week we imported 16,461 metric tons of fresh beef which was down about 1,000 metric tons. Year-to-date for the first 50 weeks of this year we are running 17 percent higher fresh beef imports than last year. The year to date numbers are still above a year ago because of the massive jump that took place earlier in the year.
Click on the LISTEN BAR below to listen to Ed's comments about the weekly boxed beef trade.
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