The weekly average Choice cutout was $227.42 for the week, $9.22 higher even though the daily Choice cutout ended the week on Friday just a little lower. The weekly average Choice cutout includes all types of sales including the daily Choice cutout.
The weekly average has been higher year over year for most of 2019, but currently it’s running about $20 higher than last year. The main reason for the big increase this week was that many but not all formula sales were based off the previous weeks higher daily spot sale prices.
There were 6,604 total loads sold for the week, 131 loads lower than the previous week but still a very good volume of sales. The daily cutout sales were only 431 loads this week, so it had limited impact on the weekly average cutout.
Formula sales were at 3,646 loads, 94 loads higher than last week and about 55% of the total loads sold this week. The formula sales include over 7 million pounds of Choice rib and loin products this week, just a little higher than last week. So this is now four weeks in a row of adding many tons of steak items in the pipeline ahead of Labor Day at higher prices.