ANALYSIS: A Closer Look at Formula vs. Negotiated Sales in the Boneless Beef Segment
In the domestic boneless beef sector, it is widely acknowledged that a significant volume of trade is conducted through formula pricing agreements. This analysis delves into this phenomenon, utilizing the volume reported by the USDA of fresh 50% lean trim as an example.
The chart above illustrates that, for the week ending 2/16/2024, 86.57% of the fresh 50% lean trim traded was priced through formulated agreements. To break this down, out of the total trade volume of 19.28M lbs.,16.69M lbs...
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