Ed Czerwien, USDA Market News reporter in Amarillo, TX, provides us with the latest outlook on boxed beef prices and the weekly cattle trade.
The Daily Choice Cutout dropped over $4.00 but the Comprehensive or Weekly Average Choice cutout only dropped 45 cents. The fact that the formulas represent about half of the total sales means that they have more impact on the average price than the Daily Spot Cutout, which was only about 12% of the total sales. Formulas normally moderate the wider swings in the Daily Spot Cutout because they move more slowly both up and down.
The main driver of the cutout during the grilling season rally is the Choice rib and loin but these two primals have had a tough time the last few weeks and have declined in prices which is contrac seasonal this time of the year.