Average beef carcass cutout values in 2018 so far are just slightly higher than a year ago with the comprehensive cutout up just a penny over the first half of 2017 at $2.14/cwt.
Looking at the same 8-week period in sales, we can see that packers have done a good job of moving product through forward sales of boxed beef with delivery dates of 21 to 90 days out.
The latest USDA carcass weight data for the week beginning April 30th brings us ever closer to the lowest anticipated fed steer and heifer carcass weights of 2018.
The very narrow spread between CAB and Choice product, reduced even further from last week, represents a great buying opportunity for the premium brand.
Holding our ground and protecting our export position is vital in the two years ahead as our fed cattle supplies grow to the cycle peak and competing U.S. protein supplies become record large.
As annual reviews are more enjoyable if the evaluation shows improvement, marketers of high-quality beef and cattle like to see a measurable margin for the extra effort.
Factoring heavily in the success for CAB in the 2017 fiscal year (October to September) was a record year in international markets with a 26.4% sales tonnage increase beyond U.S. borders.
Fourth-quarter beef pricing is quite sensitive to quality grade price spreads, traditionally focusing on increased demand for Choice, Premium Choice brands such as CAB, and Prime middle-meats.
