The daily spot Choice box beef cutout ended the week last Friday at $222.31 which was $0.90 lower compared to previous Friday. It continued to drop more on Monday, June 10. On Friday, it was about $4 lower than the same day last year when it also started a season decline. However last year it also dropped an additional $14 during the last three weeks of June. We will need to monitor this closely. It normally declines faster after Father’s Day grilling is done.
Like we have always said, the daily Choice cutout has a big impact on the following week’s formula sales which are always around 50% of the total sales. This is why the weekly average Choice cutout follows the daily cutout movement just a little slower.