The daily spot Choice box beef cutout ended the week on Friday at $214.17 which was $4.13 higher compared to previous Friday. It is above 2019 levels, when year over year it was $213.15, climbing slightly higher that week. Additionally, it continued to climb higher and was $214.51 on Tuesday, January 21, which will continue to push the weekly average cutout higher because many, but not all, formula sales are based off of the previous week’s daily spot prices.
The big news this week was the out-front sales, which get delivered after 21 days, were 1,750 loads, which was 678 loads higher than last week. There was over 1.2 million lbs. of Choice rib products that were $35 to $72 per cwt higher than the same current formula prices, so out-front sales were basically helping the weekly average cutout improve. The out-front sales always start to increase right about now because steak-type products are being bought for the upcoming Valentine’s Day. This push for qaulity cuts helps the weekly average prices for Choice rib and loin primals go higher.
