The daily spot Choice box beef cutout ended the week last Friday at $221.11, which was $6.25 lower compared to previous Friday and it was $9 lower than the same day last year. It continued to drop to $220.12 on Tuesday, May 14. The cutout had been over $234 the last week in April, which was higher than last year’s market high, so it has dropped $14 in a little over two weeks. And most importantly, this drop occured when prices normally increase prior to the Memorial Day grilling weekend.
The daily Choice rib primal was $21 lower for the week and $34 lower in the last two weeks. The loin primal was $10 lower for the week and $16 lower in the last two weeks. Those two primals are always the main driving force during the grilling season, however, rather than helping boost the cutout, they are pushing the cutout lower right now.
The previous weeks of very good numbers of higher priced out-front sales for Choice rib and loin products already has provided a lot of steak products for grilling, which no doubt had some impact on what is going on now.