Grilling Season Rally Continues with Higher Choice Boxed Beef Cutout Reported in Latest Weekly ReportMon, 21 Mar 2016 18:03:26 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 his report of weekly boxed beef trade for the week ending March 19th. The daily spot Choice box beef cutout ended the week last Friday at $231.81 which was $7.76 higher compared to the previous Friday but at one point during the week- it had been over $234. There were 557 loads sold for the week in the daily box beef cutout which was nine percent of the total volume.
The Comprehensive or weekly average Choice cutout which includes all types of sales including the daily spot cutout was $224.62, which was $6.65 higher and promoting the grilling season rally.
There were 6067 total loads sold which were 61 loads higher than the previous week. The formula sales were at 3418 loads which was 286 loads higher than last week and it was about 56 percent of the total loads sold this week. One of the reasons for the jump is that many formulas are actually based on the previous week's spot prices which were lower than the current prices which were $10 higher at times during this week.
Exports as reported on the Boxed Beef report represent primarily muscle cuts and were 478 loads which was 39 loads lower. Remember that most weeks in 2013 and 2014 we were between 800 and 1000 loads per week. 154 loads were sold to our NAFTA Neighbors and 324 loads were shipped overseas.
The out-front sales which won't be delivered for at least 22 days and were 909 loads which was 64 loads lower than last week.
Taking a look at the weekly avg primal cut prices, the Choice chuck and the round primal were $3 to $4 higher but were still $20 lower in the last 6 wks. The Choice middle meats were higher- the rib was $5 higher this week and the loin was $13 higher. Both of these items normally enjoy a seasonal rally as we approach the grilling season and they have jumped $40 to $50 in the last 6 weeks which widens the Choice to Select spread.
Fifty percent trimmings, which are the single largest item from the cutout, has leveled out this week but was $56 higher in the last 2 weeks. They are used for making ball park hotdogs and sausage products as well as for grilling.
The daily Cow Cutout on Friday was 30 cents higher and 90 % trimmings were 50 cents lower compared to the previous Friday. The cow cutout was $172.37 and those ninety percent trimmings ended the week at $216.27 on Friday.
The latest report of Imported meat passed for entry into the US for week ending March 12th showed that week we passed for import 20,862 metric tons of fresh beef which was about 1400 metric tons higher than the previous week and 700 metric tons below last year. The Year to date Total Tonnage was 11 % below last year. Australia was down 25 % and New Zealand was down 8% compared to last year but Canada was up 6 % and Mexico was up 15%.
Click on the LISTEN BAR below to hear Ed's comments about this week's boxed beef values.
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