The weekly average Choice cutout was a little lower, but total sales volume was higher helped by a very large seasonal spike in out-front sales. The cutout price was actually helped by big out-front sales for bone-in Ribeye and several loin products that were priced higher than the current average formula prices. These out-front sales can be delivered prior to Valentine's Day when restaurant sales are high for steaks. Those higher out-front sales helped the weekly average Choice Rib Primal which was about $8 higher even though the daily spot trade did not increase.
Meat Market Update | Large seasonal out-front sales pulls price, volume higher
Ed Czerwien, USDA Market News reporter in Amarillo, Texas, offers a concise summary of how last week's beef trade impacted the cattle market and beef prices.