The gap between rib-eyes and strip loins continues to widen, according to Urner Barry analyst Gary Morrison. Rib-eyes have continued to climb amid solid interest for the holiday season, while strip loins have traded sideways, he said.
The rib-eye is now trading nearly 2.0 times that of the strip loin, up from 1.7 times only three weeks ago. The 17.3% increase in the ratio now puts it in record territory, surpassing the 2008 record last seen, Morrison noted.
“The spring holiday season could jolt the market," he said. "Buyers may perceive a real value for strip loins at current prices, so look for upward pressure when interest commences in 2017.”