Beef: packers gotta have it
Live cattle traded steady in the South and slightly up in the North for an average of $123 last week. That was a victory for cattle feeders amid the second consecutive week of significantly reduced production as packers tried to back away from the higher prices. The reduction in harvested numbers continues to leave carcass weights well above previous-year levels; CAB® carcass weights for March were 24 pounds heavier than in 2011.
Although packers were unable to drive live prices down, they were able to improve margins by increasing boxed values across all grades. CAB, Choice and Select cutouts were up $5.70, $6.30 and $6.10, respectively. The move up was tied to strong seasonal demand at the retail level, causing buyers to become more active in the face of limited supplies. CAB® end meats made a strong rally, too, as strips and top butts found good support over mid-April prices, but they still traded below last year. The CAB® acceptance rate moved higher last week to stand at 24%.
Until we meat again,
-David
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