Boxed Beef Report Shows Seasonal Jump in Outfront Sales and Imports DecliningMon, 01 Feb 2016 18:23:43 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 January 30th. The daily spot Choice box beef cutout ended the week last Friday at $218.85 which was $5.98 lower compared to previous Friday. The daily Choice cutout has dropped $17 in the last 11 days. There were 691 loads sold for the week in the daily box beef cutout which was almost 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 $218.17 which was $6.61 lower and the second week in a row that it was very close to the Friday spot Choice cutout. Last year we climbed to $257 towards the end of January then dropped to $239 by mid-February then jumped back up to $259 before Memorial Day. After that spring barbecue rally we stair stepped down with a couple of short rallies to below $200 by late December. There were 6,504 total loads sold which were only 24 loads lower than the previous week. The formula sales were at 3,216 loads which was 213 loads lower than last week and it was about 49 percent of the total loads sold this week.
Exports as reported on the boxed beef report represent primarily muscle cuts and were 841 loads which was 143 lower. Our North American Free Trade Agreement neighbors purchased 118 loads and 723 loads were shipped overseas.
The outfront sales which won’t be delivered for at least 22 days were 1,312 loads which was 188 loads higher than last week and another week above 1,000. We are in the time of the year when out front sales normally make a seasonal jump prior to the early part of the grilling season. The following were the biggest reported products in the outfront sales. Almost 2 million lbs of round products with average prices $13 - $35 dollars below the average form prices. In the report, 1.3 million lbs of ribeyes whose average price were steady to $22 over the average formula prices locking in product for the grilling season. Brisket average prices $11 - $43 below average form, Choice Chuck rolls $37 below average formulas and loin products $5 - $11 below average form prices. We had a second big week of outfront sales but most of these prices continue to be below current average formula prices except the ribeyes again.
Taking a look at the weekly average primal cut prices. The Choice middle meats the rib was three lower and the loin was nine lower and they are following the normal downturn in late January and February. However both of these items normally start a seasonal rally as we approach the grilling season. The Choice chuck and round primals were six to nine lower and have ended the normal seasonal rally that usually takes place after the first of the year.
The daily cow cutout and 90 percent trimmings were almost steady. Those ninety percent trimmings ended the week at $205.19, which was almost 50 cents lower.
The latest report of imported meat passed for entry into the US for week ending January 23 showed that week we imported 21,013 metric tons of fresh beef which was about 400 metric tons lower than the previous week. The year-to-date total tonnage was still 17 percent below last year. Australia was down 32 percent and New Zealand was down 15 percent compared to last year but Canada was up 5 percent and Mexico was up 16 percent. Last year we imported about 22,800 metric tons the same week.
Click on the LISTEN BAR below to listen to Ed's comments about the weekly boxed beef trade.
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