Whereas fed cattle costs have jumped once more, hitting $170 per cwt in some markets for the final week of March, wholesale beef costs haven’t elevated together with cattle costs.The Alternative beef cutout averaged $280.51 per cwt the final week in March, up about $14 per cwt in comparison with the identical time final yr. The cutout has declined about $8 per cwt over the past 5 weeks.
Wholesale costs for just a few cuts reveal some attention-grabbing ups and downs. Ribeyes, strip loins, and full tenderloin costs have all declined over the past month. Boneless ribeyes averaged $9.83 per pound the final week in March after hitting $10.69 earlier within the month. Ribeyes have typically hit a seasonal peak lately across the Memorial Day vacation as a grilling characteristic. Whereas slightly early for that peak, tight provides within the first quarter of the yr most likely contributed to some increased costs. Strip loins have fallen again to $7.57 per pound, about equal to final yr, after reaching $8.77 just a few weeks in the past. The height in strips can be slightly sooner than standard and certain as a consequence of tighter provides as fewer fed cattle go to market.
Tighter provides of fed cattle and the sharp decline in beef cows going to slaughter have contributed to quickly escalating wholesale boneless beef costs. Ninety p.c lean boneless beef has elevated steadily this yr from $2.45 per pound in January to $2.74 per pound the tip of March. That’s solely about 9 cents per pound decrease than final yr at the moment.
Giant beef cow slaughter stored lean boneless beef costs declining by means of most of 2022. That’s prone to be reversed as beef cow slaughter has sharply declined to this point this yr. Weekly slaughter in mid-March was 61,000 head in comparison with 75,000 head the identical week final yr. That was additionally the smallest non-holiday weekly beef cow slaughter since April 2021. Fifty p.c lean boneless beef costs hit $1.44 per pound final week as fed cattle beef manufacturing tightened.
Falling wholesale steak minimize costs and rising wholesale boneless beef may counsel some modifications in shopper purchases to return. USDA weekly beef that includes knowledge indicated 69 p.c of surveyed grocery shops operating some sort of characteristic the tip of March in comparison with about 62 p.c the identical week final yr.
