The daily spot Choice cutout ended the week $2.58 lower by Friday. However the weekly average Choice cutout was $2.66 higher, helped by the formula sales that were based off of the previous week’s higher spot sales along with higher middle meat out-front type of sales. The out-front type of sales were 1,035 loads, almost twice of the daily spot sales.
One of the largest out-front sales (which are delivered in 22-90 days) were Choice loin products that included strips and tenderloins, which had average prices that were a whopping $22-68 dollars per cwt. over the current average formula prices for the same products. That large of an increase over current prices really had a big impact on the weekly average primal cut prices and pushed the weekly average cutout higher.