Analysts are watching boxed beef cutout values as the Choice cutout moves lower. Andrew Griffith, University of Tennessee ag economist, says while it is moving lower, he does not expect it to hit the lows for the year.

 

 

Beef market ‘wades through’ weeks before holidays

 

KMA Land (IA)

Oct 6, 2021

 

Analysts are watching boxed beef cutout values as the Choice cutout moves lower. Andrew Griffith, University of Tennessee ag economist, says while it is moving lower, he does not expect it to hit the lows for the year.

 

“The Choice boxed beef cutout value is at its lowest point since the first week of August and appears to be headed lower,” he says. “The market essentially has six to eight weeks to wade through until end-of-the-year holiday buying by retailers, restaurants and food service entities provides support. The market could easily slip below the $250 level, but it is unlikely it will ever challenge the lows for the year.”

 

Griffith says the restaurant industry’s performance provides part of the picture on beef demand.

 

“The national Restaurant Performance Index (RPI) value for August was released recently with the index value being 104.2,” he says. “This is still a positive value indicating expansion in the industry and positive expectations. However, the August index value is the lowest value in six months.”

 

The metric has shown a bounce back for restaurants, but uncertainty remains...

 

more

https://www.kmaland.com/ag/beef-market-wades-through-weeks-before-holidays/article_2ecf35c7-4be6-50da-8448-5520d35de76e.html