June 25 Weekly Update

6/25 – In Friday’s Cattle on Feed Report, the USDA said new placements onto feedlots in May were very close to year-ago levels, but that feedlots inventories at 11.56M head were 4.1% higher than last year and the highest on record for the month of June. Beef supplies are up, but not nearly as much as expected. Back in Jan, the USDA had forecast 27.28B pounds of beef for 2018, up 5.4% from 2017. That projection is now down to 27.12B and just a 3.3% increase. Seasonally, Memorial Day and Father’s Day are in the review mirror, and July 4th will be mostly about burgers. Domestic 90% lean beef trimmings have been stubbornly high for the past 4 years and look to stay that way. Lean 90s are $2.21 and look to average low $2.20s for July/Aug, compared to $2.33 last year. Beef 50s fat trim is $.67 and projected to average $.70 for July/Aug vs. $.82 last summer.