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Meat Market Update | Out-front sales power prices higher

Video-Meat Market Update | Out-front sales power prices higher

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

The weekly average Choice cutout, which includes all types of sales including the daily Choice cutout, was $230.90. This was $2.14 higher even though the daily choice cutout dropped a little lower during the same week. The total volume of sales dropped some and there were 6,587 total loads sold for the week, which was 458 loads lower than the previous week.

However the biggest news this week was the large out-front sales numbers. There were about 1.7 million lbs of Choice rib products, along with 1.7 million lbs of Choice loin products that were sold. They were mostly $12-93 dollars per cwt higher than the current formula price for the same product. As a result, there was a big jump in prices. The out-front sales boost is likely tied to Memorial Day as they get delivered three weeks out.

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