Live Cattle & Boxed Beef

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Redhides

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Looking for some edge-a-mucation gents.

So I'm tracking Live Cattle at $122.50 on 1400lb steers with average dressed steer weights at 935.

935/1400 is roughly 67%

$122.50/.67 = $182.83. Boxed Beef is 182.00-189.00.

Where is the profit and what am I missing? Hides.....offal?

Thanks
 
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Redhides

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And perhaps I should clarify....is the 182.00 per hundred weight mean that the price for one finished carcass....cold, cut into primals, neatly retail wrapped, and in the "box"? If so, how is the packer making a profit? If he's got a carcass that is 67 percent of the hoof, then 122.00 on the hoof and 182 on the carcass are one in off the same. Except where is the packers profit, where is the packers overhead, where is the $$$ to account for handling and distribution, etc.

Essentially.....what all is in that box beef price and what isn't?

Anybody got a bead on that?

Thanks
 

Son of Butch

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My understanding is...
Boxed Beef is based on average.
Live price quoted is based on Prime.
I'm sure there is a math formula that would convert the 2 markets to make an apples to apples comparison.
But as I read somewhere recently...
There are 3 types of people.
Those who can do math and those who can't. :2cents:
 

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