Lower Boxed Beef Trade Prices Versus a Year Ago Helping Move Beef Through the Pipeline- Ed Czerwein ExplainsTue, 07 Jun 2016 03:23:42 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 June 4th. At the bottom of his commentary, you can click on the LISTEN BAR to hear Ed's comments.
The daily spot Choice box beef cutout ended the week last Friday at $222.61 which was 54 cents higher compared to previous Friday. Last year the daily cutout topped out at $265 the week before Memorial Day then dropped 10 dollars by the Friday following Memorial Day and this year we dropped less than 2 dollars during the same time period. The current daily Choice cutout is 40 dollars lower than last years top which has no doubt helped to move product. There were 583 loads sold for the week in the daily box beef cutout which was 10% of the total volume.
The Comprehensive or weekly average Choice cutout which includes all types of sales including the daily spot cutout was $215.44 which was $1.59 lower than a week ago. There were 5950 total loads sold which was 280 loads lower than the previous week.
The formula sales were at 3341 loads which was 75 lds hgr than last week. It was about 56 percent of the total loads sold this week.
Exports as reported on the Boxed Beef report were 537 loads which was 391 loads lower along with the main reason for the decline in total volume. 147 loads were sold to our NAFTA Neighbors and 390 loads were shipped overseas.
The out-front sales which won’t be delivered for at least 22 days and were 863 loads which was 82 loads lower than last week. These outfront sales will still be available for delivery just prior to the fourth of July.
Taking a look at the weekly average primal cut prices. The Choice chuck and round primals were $1 to $4 lower. The Choice middle meats- including the rib and loin were both $1 lower. But the daily spot Choice rib continued to rally which helped widen the daily Choice- Select spread to 25 dollars last Friday.
The daily Cow Cutout was about 90 cents lower and 90% trimming were about 80 cents lower at $218.03 compared to the previous Friday and they were trading just below $300 last year. 90% trimmings are the largest single product from cows and provide a significant portion of the ground beef trade. They are about 27 % below last years price.
The latest report of Imported meat passed for entry into the US for week ending May 28 showed that week we passed for import 20,705 metric tons of fresh beef which was almost 2000 metric tons lower than the previous week and roughly 1000 higher than last year. The Year to date Total Tonnage was 13 % below last year. Australia was down 31 % and New Zealand was down 13 % compared to last year but Canada was up 8 % and Mexico was up 14%.
Click on the LISTEN BAR below to hear Ed Czerwein's comments on this week's Boxed Beef Trade.
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