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Meat Market Update | Box beef cutout slowly starts comeback

Video-Meat Market Update | Box beef cutout slowly starts comeback

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

The daily spot Choice box beef cutout ended the week at $205.09, which was $3 lower compared to previous Friday. It is still below last year, when it was $219.39. Usually this is the time of the year when it starts to climb higher after a seasonal decline, so hopefully it will start to climb higher now. In fact, Friday it started to improve, then continued higher and was $207.47 on Tuesday, February 25.    

The weekly average Choice cutout, which includes all types of sales, including the daily Choice cutout was $210.18. This which was $0.27 higher on the heels of the weekly average Choice rib primal price jump. It has firmed up similar to previous years after dropping lower. However, it still remains higher than the daily Choice cutout because formula and out-front sales kept it from dropping much lower with larger sales volume than the daily spot sales.

The weekly average Choice rib primal was $8 higher, starting the normal spring rally, though a little later than last year. The weekly average Choice loin primal was steady. We are just ahead of the normal grilling season rally that should start soon.

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