|
Northeast Iowa | User’s Guide to USDA’s Boxed Beef Cutouts
January 2023
The boxed beef cutout represents the estimated gross value of a beef carcass based on prices paid for individual beef items derived from the carcass. AMS calculates two daily cutout values – Choice and Select. The cutout values are published on the National Daily Boxed Beef Cutout and Boxed Beef Cuts - Negotiated Sales reports twice per weekday. The morning report LM XB402, released at 11 a.m. Central, covers market activity from 1:30 p.m. of the prior business day through 9:30 a.m. of the current business day. The afternoon report LM XB403, released at 3 p.m. Central, is cumulative and includes all market
activity from the morning report plus any transactions between 9:30 a.m. and 1:30 p.m. Historical data is available on USDA’s DataMart website.
Reported sales of individual beef items meet the following criteria:
•
All boxed beef transactions are original sales from firms regulated by Livestock Mandatory Reporting (LMR) to first time buyers. The threshold for LMR is firms slaughtering an average of 125,000 head of cattle per year.
•
Sales are negotiated, with the product delivering within 0-21 calendar days to the domestic market.
•
Prices are quoted in U.S. dollars per hundred pounds (cwt).
•
Beef cut items are from non-dairybred steer and heifer beef and are referenced according to the Institutional Meat Purchase Specifications (IMPS) when possible. Cut items are no older than 14 days from the date of manufacture and are limited to the
USDA Choice and Select grades. Branded product is excluded.
•
Ground beef and beef trimmings are from both dairybred and non-dairybred steer/heifer beef and are no older than 7 days from the time of manufacture.
•
Sale prices of all beef items are quoted on an F.O.B. plant basis (delivered price minus freight cost).
Costs for fabricating carcasses into individual beef items are not deducted from the cutout values. Additionally, the cutout values do not include packer revenues from the sale of hide and offal products removed during slaughter – AMS estimates this value on the NW_LS441 report. By-products, also known as credit items, are created during slaughter. Credit items vary in type and quantity, as they are an outcome of the sub-primal style being produced. Trimmings, bone and fat are examples of credit items. | |
|
box beef up $312.51
