Wholesale beef prices rise in January

by Talk Business & Politics staff (staff2@talkbusiness.net) 131 views 

Wholesale beef prices continue to rise through January, which is good for packers like Tyson Foods and Cargill

Higher beef prices will help operations margins as long as prices don’t get too high for consumers, analysts say.

Derrell S. Peel, extension livestock marketing specialist at Oklahoma State University, reported Monday, (Jan. 21) boxed beef cutout prices rose 2.9% for Choice cuts and 3.4% for Select cuts during the first three weeks of 2019, compared to a year ago. (Cutout refers to the sum calculated values of the various cuts of beef).

He reported Choice box beef prices were $212.36 per hundredweight for the week ended Jan 18. Select boxed beef prices were $207.07 per hundredweight. Peel noted the middle meats have provided the most support to cutout values in recent months.

Rib cuts have risen the most this year at $344.79 per hundredweight, a 9.8% gain from a year ago. Loin cuts are up 4.7% to $280.80 per hundredweight compared to the same period in 2018. Chuck cuts are down 2.5% from a year ago.

Peel said the brisket market has been a “juggernaut” in recent years with strong barbecue demand. He reports the brisket primal cuts rising 10.4% from a year ago to $190.74 per hundredweight. Peel said brisket primal cuts averaged a 15.8% higher price throughout 2018.