Cattle and wholesale beef prices vary seasonally, and it’s useful to examine how they change over time. Derrell Peel, Oklahoma State University agricultural economist, looked at these seasonal variations over the last three years and spelled it out in a letter to Extension agents called Cow/Calf Corner.
BOXED BEEF CUTOUT
The USDA’s boxed beef cutout value represents the aggregation of all primary muscle cuts, Peel said. This typically varies about 13%, from a high in May about 7% above average to a low in October about 6% below.
The cutout includes values for four primals: rib, loin, chuck and round, along with the brisket, short plate and flank, he said. Each primal has distinct seasonal price patterns.
MIDDLE MEATS
The rib is the highest-value primal on average and consists primarily of the ribeye, Peel said. It varies 14% from a June peak nearly 8% above average to a January low about 6% below.
The boneless ribeye has a peak in May 11% above average and the highest peak in November 13% above average with a seasonal low in January 10% below, he said. Ribeye prices tend to vary about 23% from high to low.
Overall, the loin primal has a seasonal range of 26% from a May/June high 14% above average to an October low about 13% below.
The tenderloin varies by 18% from a peak 12% above average in November to a low about 7% below in September, Peel said. This contrasts sharply with the strip loin, which has a very wide seasonal range averaging 57% from a May/June peak about 36% above average to a November low about 21% below.
Sirloin product patterns generally are similar to strip loins, he said.
END CUTS
End primals (chuck and round) have less seasonal variation, Peel said. The round varies by 9% from a peak in January 6% above average to lows 2% to 3% below from July through December.
The round peaks in March about 7% above average with a low in September about 7% below, he said. Outside rounds, however, peak in January 14% above average with a minor peak again in October and a seasonal low in April 8% below.
The chuck also includes products that vary widely in value, Peel said. The top blade, source of flat iron steaks, ranges from 7% above average in May to a February low 6% below.
The clod (petite) tender ranges from 38% above average in April to 20% below in September/October, he said. The chuck roll ranges from 10% above average in October to 7% below in July.
Overall, the chuck primal varies only 7% from a January peak 4% above average to 2% below from July to December.
CATTLE, BEEF RECAP
Cash cattle traded in Iowa Monday at $114 per cwt on a live basis, steady to down $2 from last week.
Cash cattle traded in the Plains last week at $111 per cwt on a live basis, down $1 from the previous week, and at $114 to $116 in Nebraska, steady to down $1. Dressed-basis trading occurred at $183 to $185 per cwt, steady to up $2.
The USDA choice cutout Monday was down $0.03 per cwt at $214.70, while select was up $1.04 at $191.67. The choice/select spread narrowed to $23.03 from $24.10 with 72 loads of fabricated product sold into the spot market.
No cattle were tendered for delivery against the Aug contract Monday.
The CME Feeder Cattle index for the seven days ended Friday was $141.62 per cwt, down $0.09 from the previous day. This compares with Monday’s Aug contract settlement of $140.52, up $0.90.