Overall, primal beef values are exhibiting their regular seasonal price behavior, said David Anderson, Extension economist at Texas A&M University, in a Livestock Marketing Information Center letter called In The Cattle Markets.
The middle meats, largely the rib, are increasing in value while the end meats are declining in value, Anderson said. For the year, each primal has averaged from 3.4% (brisket) to 15.1% (loin) more than last year.
CHOICE PRICE PEAK IN JUNE
While there have been some ups and downs, the choice beef cutout has generally trended lower since it hit its peak back in June, he said. The weekly average peak in mid-June was $339.93 per cwt, but the choice cutout has averaged right at $300.00 per cwt for the year, 13.6% more than last year.
While the cattle and calf markets have been on a wilder ride lately, the weekly cutout has ranged from $307 to $297 per cwt since mid-September, Anderson said. Underlying the cutout value are individual primal cuts that have their own seasonality to them driven by holidays, changing seasons and supplies.
The primal rib value hit $573 per cwt the last week of November, its highest value of the year, and higher than the $515 per cwt last year at this time, he said. The primal rib typically increases this time of year heading into the holidays.
Wholesale ribeyes have increased as well, hitting $13.46 per pound last week, he added.
The loin primal hit its peak at $495.95 per cwt back in mid-year, as is normal, Anderson said. The primal loin value was $388.14 per cwt in late November and has crept up a little over the last few weeks, according to USDA data compiled by the LMIC.
Wholesale strip loins also peaked in mid-year at $10.58 a pound, he said.
END CUTS SOFTER
Primal chucks and rounds have fallen dramatically in value since the end of October, Anderson said. The round has declined from $271 per cwt to $230 in late November.
Over the same period, the chuck declined from $265 to 238 per cwt, but while lower, they remained well above last year, he said.
Short plates and flanks have declined sharply, much like the chuck and round, Anderson said. The short plate has been on a remarkable run this year, from highs over $270 per cwt to $169 per cwt last week.
In mid-year, the short plate was the 3rd highest value primal following only the rib and loin, he said. Flank values had a similar run this year, peaking mid-year at $234 before declining steadily to $131 per cwt in late November.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $165.82 per cwt to $173.08, compared with last week’s range of $172.57 to $180.00 per cwt. FOB dressed steers, and heifers went for $269.75 per cwt to $275.17, compared with $274.30 to $279.24.
The USDA choice cutout Wednesday was down $1.14 per cwt at $291.64 while select was up $0.55 at $259.21. The choice/select spread narrowed to $32.43 from $34.12 with 138 loads of fabricated product and 38 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.25 to $1.38 a bushel over the Mar corn contract, which settled at $4.79 1/2 a bushel, down $0.05 3/4.
No delivery intentions were posted for Dec live cattle Wednesday.
The CME Feeder Cattle Index for the seven days ended Tuesday was $215.32 per cwt, down $0.73. This compares with Wednesday’s Jan contract settlement of $217.37, down $1.87.