High quality steak and roast items such as ribeyes, strip loins, tenderloins and sirloins carry an outsized share of the load when it comes to generating pricing separation up and down the carcass quality spectrum.
In the past two years the chuck and round carcass primals have edged their way upward relative to their contribution to total carcass value. One of the primary reasons for this is the decline in domestic supply of lean grinding beef from cull cows.
Evolution of cattle type, management technology and production economics continue to shape the beef business. As a pioneer in the branded beef space, the Certified Angus Beef ® brand has remained relevant throughout the supply chain via continued innovation. Effective the first week of March, the brand will modify its ribeye area (REA) specification from the current 10 to 16 square inch acceptable range to include carcasses wth ribeyes measuring up to 17 square inches.
As Prime supplies leapt higher in 2018, continually increasing, the retail grocery sector woke up to the fact that Prime beef cuts could be accessed dependably throughout the year. Prime was no longer reserved for only the high-end restaurant customer. Simply put, creating availability at the grocery level unlocked consumer demand where it hadn’t been tapped before.
Seasonal demand shifts for different cuts constantly change the percentage of total carcass value that each cut represents. Often those changes are subtle, but January is typically characterized by more dramatic adjustments with contribution from several cuts shifting total carcass value.
Launched in early August 2024, the USDA’s Live Cattle Mandatory Reporting dashboard is still a relatively new tool. The purpose of the web platform is to keep market participants informed of trends in price distribution across regions and between differing quality and yield classes of cattle.
The boxed beef market is nearing the conclusion of the final price push for high demand middle meats. The window is quickly closing on wholesale orders that will ship in time for consumers to shop ahead of the Christmas holiday.
Gross cow/calf returns have exceeded expectations as the shrinking calf supply and strong beef demand collude to drive higher receipts. Even so, turnaround from the depth of the latest drought that brought beef cow harvest to a cyclical peak in 2022 has been slow to develop.
The fourth quarter tends to be the period most prone to follow historical seasonal patterns for carcass cutout prices. Although annual price levels have certainly advanced to record levels, the pattern in spot market values from October through December tends to track a pattern.
Feeders will continue to reap rewards in the cost and return equation in a market that has recently moved to higher prices. Grid-sold cattle are, on average, capturing Choice and Prime quality premiums at a higher percentage rate this fall. Yet, yield grade and heavy-weight discounts threaten to devalue premiums for the heavy pens of steers, in addition to fewer CAB qualifiers.
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