Meat Market Update | Big price drop with delayed impact

Ed Czerwien, USDA Market News reporter in Amarillo, Texas, offers a concise summary of how last week's beef trade impacted the cattle market and beef prices.

The daily Choice cutout dropped over $7 for the week but the weekly average Choice cutout dropped only $1.27 because of the buffering impact of the formula sales that represent around half of the total sales each week. Many, but not all of the formula prices are based off of the previous week's spot trade which in this case did not see a big drop. However next week's formula sales will reflect more of this week's big drop.

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