More than adequate
To meet their needs, packer buyers did not have to bid quite as high for cash cattle last week, as trade occurred in the range of $120 – $122/cwt. February Live Cattle futures also moved lower ($121.60) in the wake of a reduced harvest and increased market-ready supplies.
Choice and CAB boxed-beef values were down amidst limited buyer interest. Packers found themselves in a larger carryover situation than expected, especially considering three weeks of reduced harvest. Buyers remain cautious given the downside risk on the cattle market and pricing of competing proteins. CAB ribs gave up the most ground again as the primal cut dropped more than 4.5% vs. the previous week.
Looking back to the most recent grading records, CAB acceptance rates continued their march forward. The late December USDA reports show the average figure improving almost a full point from mid-December (19.23% vs. 20.31% leading up to Christmas). That’s in line with historical values but lower than both year-ago and three-year averages.
Until we meat again,
-David
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