What is considered boxed beef?
Boxed beef – Cuts of beef put in boxes for shipping from a packing plant to retailers. These primal (rounds, loins, ribs, chucks, etc.) and subprimal cuts are intermediate cuts between the carcass and retail cuts.
How is boxed beef prices determined?
To determine the CME Boxed Beef Index value, divide the five-day total value by the five-day total load count. The result is a five business day weighted average price of beef carcass values in dollars per hundredweight ($/cwt).
What is Choice boxed beef?
The choice/select boxed beef spread, commonly referred to as the choice/select spread, is the difference between wholesale boxed beef cut-out values for the U.S. Department of Agriculture’s choice and select quality grade carcasses on any given day. The cut-out value is not a carcass price.
What does boxed beef price mean?
The boxed beef cutout (BBC) represents the estimated value of a beef carcass based on prices paid for individual beef items derived from the carcass.
What is the significance of boxed beef to US beef industry?
The boxed beef cutout is important as it represents the estimated value of a beef carcass on a given day. The USDA periodically makes changes to the yield contribution to reflect changes in the industry cuts.
What is the difference between feeder cattle and fed cattle?
And for a small commission of each trade, a broker can help determine the best route for the producer to take. There are two types of cattle futures contracts — Live Cattle and Feeder Cattle. Feeder Cattle consist of calves weighing 600-800 pounds while Live Cattle are cattle fed to the point of harvest weight.
What are USDA meat grades?
There are eight different USDA beef grades: prime, choice, select, standard, commercial, utility, cutter and canner. Prime being the highest beef quality and canner being the lowest.
What is the difference between feeder cattle and slaughter cattle?
Feeders Refers to weaned calves grazing pasture and of sufficient weight and maturity to be placed on high-energy rations for finishing; they are generally older, weigh more, and carry more condition (finish) than stockers. Slaughter Cattle Refers to cattle grazing on pasture and suitable for slaughter.
Why do feeder cattle cost more than live cattle?
Feeder cattle typically need to gain more than 500 pounds before they reach slaughter weights, so corn prices have a big impact on feeder cattle prices. Live cattle, on the other hand, are ‘finished’ products that are ready for sale to slaughterhouses.
What is the highest USDA grade of beef?
– Prime. For the Prime grade, the minimum degree of marbling required is a minimum slightly abundant amount for carcasses throughout the range of maturity permitted in the bullock class. – Choice. – Select. – Standard. – Utility.
What do USDA beef grades mean?
The beef grading system developed by the United States Department of Agriculture is a voluntary grading system based on the meat’s maturity and level of fat marbling. These two factors are indicators of the beef’s tenderness. Beef that is given a higher grade is usually from younger cattle and has more fat marbling.
How does USDA grade beef?
The cut you are buying.
How is boxed beef cutout calculated?
Key benefits. Track the supply and demand dynamics of beef transacted on the spot cash market.