Agricultural News
After a Dramatic End of Year Increase in Choice Boxed Beef Prices, Latest Cutout Values Pull Back
Tue, 26 Jan 2016 05:03:44
On Mondays, Ed Czerwein with the USDA Market News Office in Amarillo, Texas, releases his overview of the boxed beef trade for the previous week. Here is his latest report for the week ending January 23rd, which continues to track the dramatic up and down in recent days of the choice cut out values. Click on the LISTEN BAR below to hear his comments about the latest numbers:
"The daily spot Choice box beef cutout ended the week last Friday at $224.83 which was $7.64 lower compared to the previous week and $10.33 below the $235 top set Monday thru Thursday of that same week. This daily spot Choice cutout has jumped over 44 dollars up to that $235 figure in a little less than three weeks. There were 649 loads sold for the week in the daily box beef cutout which was about 10 % of the total volume.
"While the pullback from $235 is significant, this decline that began on Friday January 15 was a normal seasonal change that usually runs until late in February before a the spring rally in March at the beginning of the grilling season.
"The Comprehensive or weekly average Choice cutout which includes all types of sales including the daily spot cutout was $224.78 which was $1.48 hgr and within 5 cents of the daily spot cutout close on Friday.
"There were 6528 total loads sold which were 437 loads higher than the previous week. The formula sales were at 3429 loads which was 22 loads higher than last week and it was 53 percent of the total loads sold this week.
"Exports as reported on the Boxed Beef report represent primarily muscle cuts and were 984 loads which was 432 higher. 124 loads were sold to our NAFTA Neighbors and 860 loads were shipped overseas. This was the highest number of loads of beef going into the export market in quite a while.
"The out-front sales which won't be delivered for at least 22 days were 1124 loads which was 201 loads higher than last week. The following were the biggest reported products in the outfront sales. There were over 3 million lbs of ribeyes whose average price was very close to the current prices and about $4 over the average formula price locking in the product for the grilling season. Brisket average prices were $27-$37 below the current average formula prices, round products at $15-$39 below current average formula prices and chuck rolls that were $31 below average formula prices. Most of the outfront products were below the current prices by quite a bit except for the Ribeyes which were a little higher.
"Taking a look at the weekly average primal cut prices, the Choice middle meats saw the rib was $6 lower and the loin was $2 lower. The Choice chuck and round primals were $4-$6 higher.
"The latest report of Imported meat passed for entry into the US for week ending January 16 showed that week we imported 21,467 metric tons of fresh beef which was about 3300 metric tons higher than the previous week.
"However the year to date total tonnage was 21% below last year. Australia was down 33 % and New Zealand was down 21 % compared to last year but Canada was up 6 % and Mexico was up 7 %. The tremendous decline in the imports that began last summer has continued. The interesting thing is that beef in Cold Storage has increased while imports were declining very dramatically."
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