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Wholesale Beef Prices Are Starting The New Year Off Strong, According to Economist Derrell Peel

Wholesale Beef Prices Are Starting The New Year Off Strong, According to Economist Derrell Peel
Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Dr. Glenn Selk. Today, Dr. Peel reviews the strong start to the year that wholesale beef prices are currently having.
 
"Wholesale beef markets are starting 2019 with a continuation of generally strong prices seen last year. For the first three weeks of the year, boxed beef cutout prices are up 2.9 percent for Choice and 3.4 percent for Select compared to the same period last year. In 2018, weekly boxed beef prices averaged 2.2 percent higher year over year compared to 2017. Wholesale beef prices were higher in 2018 despite a projected 2.8 percent increase in beef production and larger pork and poultry supplies. For the week ending January 18, 2019, Choice boxed beef prices were $212.36/cwt. and Select boxed beef price was $207.07/cwt.
 
"Middle meats have provided the most support to cutout values in recent months. Current Choice rib primal price is $344.79/cwt., up 9.8 percent year over year. Last year, rib primal prices averaged 6.2 percent higher compared to 2017. Choice loin primal price is currently $280.80/cwt., up 4.7 percent compared to the same week last year. In 2018, Choice loin primal prices averaged 1.5 percent higher year over year. 
 
"Currently, chuck primal price is $174.23/cwt., down 2.5 percent from the same week last year. Across all weeks in 2018, chuck primal prices averaged 2.0 percent higher year over year. Choice round primal value is currently $168.40/cwt., down 1.8 percent from the same week last year. In 2018, round primal prices averaged 3.3 percent lower year over year compared to 2017.
 
"The brisket market has been a juggernaut in recent years with strong barbeque demand combining with traditional brisket markets, such as corned beef and pastrami, to push brisket values higher. Current brisket primal price is $190.74/cwt., up 10.4 percent year over year. In 2018, brisket primal values averaged 15.8 percent higher compared to the previous year. Brisket prices have generally trended up over the last decade. In 2009, brisket primal prices averaged 69.2 percent of boxed beef cutout prices. By 2018 brisket primal prices averaged 83.7 percent of boxed beef cutout values. 
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