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Cutout drops $4.25 as typical seasonal slump continues

Ed Czerwien, market analyst based in Amarillo, Texas, offers a concise summary of last week's beef trade.

The weekly average Choice cutout, which includes all types of sales, including the daily Choice cutout, was $216.68. This was $4.25 lower and when compared to the same week last year, which was 201.73, it is still much higher. Additionally, it normally drops lower after Labor Day for a while then typically rebounds higher in October on the heels of the rib primal rally for the holidays.

The Choice rib primal has seen a very big rally every fall during the past six years because Choice and Prime Rib products have become a very big part of company and family parties from prior to Thanksgiving through the Christmas season. In fact, sometimes these are the highest prices for the entire year so this seasonal factor has become even bigger then that grilling season rally.

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