What is the Current Hanging Weight Price for Beef?

If you’ve been wondering what beef costs per pound at the wholesale level, you’re not alone. Hanging weight beef prices fluctuate regularly based on market conditions, so it can be hard to keep track of the current rate meat processors and retailers are paying. In this comprehensive guide, I’ll explain exactly what hanging weight means and break down the most recent price data so you can understand the true value of beef today.

What Does Hanging Weight Mean?

First, let’s cover the meaning of the term “hanging weight.” In the beef industry, hanging weight specifically refers to the weight of the entire carcass before it is processed into smaller cuts. This includes the bones, fat, and unusable trim in addition to beef that will be sold.

Hanging weight is used as the pricing basis when beef carcasses change hands between meat packers distributors retailers, and food service companies. It allows them to compare value between carcasses of different sizes.

Typically about 60-70% of the hanging weight consists of edible beef products once all the excess is removed The remaining percentage is waste from bones, fat trimmings, cartilage, etc Knowing the hanging weight price is useful, but the cost per pound of usable meat is higher after accounting for this waste.

Now that we understand what hanging weight entails let’s look at recent price trends.

Hanging Weight Price Trends in 2022-2023

According to data from the United States Department of Agriculture (USDA), the average hanging weight price for beef in 2022 reached record highs surpassing previous years. This was driven by strong consumer demand along with supply constraints.

Some key data points:

• The 2022 average Choice-grade steer hanging weight price peaked at around $305 per cwt (100 lbs).

• Average Select-grade steer price topped $295 per cwt.

• Hanging weight prices for heifers were 5-10% lower on average than steers for the same grade.

• Prices fluctuated within a range of $250-330 per cwt based on seasonal factors.

• Highest prices were seen in the late spring/early summer grilling season.

• Lowest prices occurred in the late fall when beef supply expands.

As we move into 2023, prices have moderated slightly but remain historically high. Current USDA data shows:

• Choice steer hanging weight prices averaging $275-290 per cwt.

• Select grade steer prices at $265-280 per cwt.

• Heifer prices following similar patterns at a 5-10% discount to steers.

Calculating Retail Beef Value

To determine the value of beef at the retail level, we have to adjust the hanging weight price to account for waste removal. This will give us the true price per pound that consumers pay.

Let’s walk through an example:

• Hanging weight price: $300 per cwt
• Waste percentage: 30%
• Hanging weight of carcass: 600 lbs

Step 1) Remove 30% waste at 600 lbs hanging weight

• 600 lbs x 0.30 = 180 lbs waste
• 600 lbs – 180 lbs waste = 420 lbs usable beef

Step 2) Divide hanging weight price by usable pounds

• $300 per cwt / 420 lbs usable beef = $0.71/lb retail beef value

So with a $300/cwt hanging weight, the actual value per pound of salable beef ends up around $0.71/lb once waste is removed.

Comparing Retail Prices for Different Grades

As we determined above, the retail value of Choice-grade hanging beef is currently around $0.70-0.75/lb. For Select, prices drop down to the $0.60-0.70/lb retail range.

Here’s how common retail beef cuts typically compare:

• Ground Beef (80/20): $4-6/lb for Choice, $3.50-5/lb for Select
• Sirloin Steak: $7-9/lb for Choice, $6-8/lb for Select
• Tenderloin: $14-18/lb for Choice, $12-16/lb for Select
• Brisket: $3.50-4.50/lb for Choice, $3-4/lb for Select

So the grade makes a noticeable difference in the price consumers pay. But the largest factors affecting retail beef prices are the specific cut and the retailer’s margins.

Regional Variations in Beef Prices

It’s important to note beef price averages can vary significantly between regions. Areas further from major cattle supplies like the coasts tend to see higher prices. Some key regional differences:

• Midwest: Hanging weights often match national averages very closely. Retail prices may be 5-10% lower on some cuts.

• Northeast: Retail prices are typically 10-15% above national averages.

• Southwest: Retail prices align more closely with national averages, only slightly above Midwest prices.

• West Coast: Much higher price premiums over national averages, potentially 20% or more.

So be sure to take your geographic location into account when evaluating current beef prices!

Forecasting Beef Price Changes

Looking ahead at the rest of 2023, experts expect hanging weight and retail beef prices to decline moderately. However, prices are expected to remain well above the 5-year average.

Some factors that could impact prices include:

• Expansion of domestic beef production and processing capacity
• Changes in export demand and a stronger dollar
• Feed grain prices and drought conditions
• Consumer demand fluctuations

The supply challenges that drove record prices in 2022 are expected to moderate slightly. But the overall supply/demand environment will likely remain tight, limiting major downward price swings.

Tracking hanging weight and retail beef prices can seem complicated, but it’s helpful for understanding the true costs as beef moves through the supply chain. Now that you know the approximate hanging weight prices and how to calculate retail values, you can better analyze the deals being offered where you shop. While prices vary, Choice beef is delivering around $0.70-0.75/lb retail value currently, with Select 5-15% lower. Monitor the USDA reports to stay up to date on market changes in your area!