Last week’s average USDA choice beef cutout value was up from the previous four weeks and was the eleventh highest weekly value of 2024, showcasing the consumer and export demand for the product.
In fact, a line graph’s pattern of the choice beef cutout value has woven its way around last year’s line all year, both departing the 2018-2022 average throughout the year, except for the late-spring/early summer peak in the average.
The average weekly USDA choice cutout value was listed at $313.75 per cwt by the Livestock Marketing Information Center, which compiled and graphed the USDA data. This was up $4.34, or 1.08%, from the previous week’s value of $310.41, up $21.99, or 7.54%, from the same 2023 week’s value of $291.76 and up $79.63, or 34.0%, from the previous five-year average of $234.12.
CUTOUT LED BY PRIMAL RIB
Last week, the average price for choice 600- to 900-pound primal ribs (about 11% of the carcass) was $645.20 per cwt, up $21.88, or 3.51%, from $623.32 a week earlier, up $51.29, or 8.64%, from $593.91 a year ago and up $204.15, or 46.3%, from the previous five-year average or $441.05.
Like the total beef cutout value, the wholesale price of the rib primal this year wove itself over and under last year’s value. It began a serious diversion about mid-November, but there is a strong seasonal tendency for this cut to fade in price once the holiday retail and restaurant buying drops off.
CHUCK AND ROUND
The chuck primal (about 30% of the carcass) has held a wholesale price higher than last year in all but two weeks at the end of June, although last week’s price set a definite annual high the last week of October at $290.19 per cwt, falling rapidly in the four weeks after that.
Last week’s chuck primal value was listed at $247.09 per cwt, up $1.32, or 0.54%, from $245.77 a week earlier, up $17.14, or 7.45%, from $229.95 a year earlier and up $59.53, or 31.7%, from the 2018-2022 average of $187.56.
At the other end of the carcass, the choice 600- to 900-pound boxed primal round (23% of the carcass) value last week was higher than last year or the previous five-year average, beginning a late-year bump. The price last week was reported at $244.11 per cwt, up $4.65, or 1.94%, from $239.46 a week earlier but up $40.63, or 20.0%, from last year’s $203.48 and up $55.20, or 29.2%, from the average of $188.91.
The round’s value has been higher than last year and the average for most weeks of the year.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $192.00 per cwt to $193.19, compared with last week’s range of $191.08 to $193.82 per cwt. FOB dressed steers, and heifers went for $299.65 per cwt to $302.72, compared with $297.79 to $304.38.
The USDA choice cutout Tuesday was down $1.74 per cwt at $315.63 while select was off $1.07 at $288.50. The choice/select spread narrowed to $27.13 from $27.80 with 85 loads of fabricated product and 27 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $318.34 per cwt, and 50% beef was $77.26.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.19 to $1.35 a bushel over the Mar corn contract, which settled at $4.43 1/2, down $0.01 1/2.
No delivery intentions were posted for the Dec live cattle contract Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $262.54 per cwt, up $0.81. This compares with Tuesday’s Jan contract settlement of $257.47, up $1.92.