Lower Boxed Beef Prices, Boost Out-Front Sales Aimed at Start of Grilling SeasonMon, 22 Feb 2016 18:00:07 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 last Friday at $211.66. That was $4.42 lower compared to previous Friday. There were 714 loads sold for the week in the daily boxed beef cutout which was about 12 percent of the total volume.
The comprehensive or weekly average Choice cutout which includes all types of sales including the daily spot cutout was $211.65 which was $4.02 lower but was within one cent of the Friday daily spot. However this is the time of the year when we normally drop. Last year we dropped $18 from the end of January to the end of February but then started the spring barbecue rally and hoping for a turnaround soon.
There were 6,062 total loads sold which were 625 loads higher than the previous week. The formula sales were at 3,110 loads which was 54 loads lower than last week and it was about 51 percent of the total loads sold this week.
Exports as reported on the boxed beef report represent primarily muscle cuts and were 675 loads which was 289 higher. Sales to North American Free Trade Agreement neighbors totaled 70 loads and 605 loads were shipped overseas.
The out-front sales which won’t be delivered for at least 22 days and were 1,055 loads which was 515 loads higher than last week. The largest reported out-front sales were over three million pounds of briskets whose average prices were $11 to $19 below the average formula prices. Also about ¾ million pounds of round products with average prices $18 to $21 below average formula. However a few ribeyes and shortloins just a little over 300,000 pounds priced at $19 to $26 above current average formula prices and no doubt aimed at the beginning of the grilling season.
Taking a look at the weekly average primal cut prices. With the Choice middle meats, the rib was four higher again this week but the loin was four lower. Both of these items normally start a seasonal rally as we approach the grilling season and the rib appears to be started. The Choice chuck and the round primal were both six lower.
The daily cow cutout and 90 percent trimmings were both about 50 cents higher. The cow cutout was $167.59 and those 90 percent trimmings ended the week at $209.84. That has jumped $18 in the past two months.
The latest report of imported meat passed for entry into the US for week ending February 13 showed that week we imported 19,877 metric tons of fresh beef which was about 1,000 metric tons lower than the previous week and 2,000 below last year. The year-to-date total tonnage was 14 percent below last year. Australia was down 28 percent and New Zealand was down 9 percent compared to last year but Canada was up 5 percent and Mexico was up 17 percent.
Click on the LISTEN BAR below to listen to Ed's comments about the weekly boxed beef trade.
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