CASH: In the South, light to moderate amounts of cattle traded from $119 to $120, steady to $1 firmer. Light to moderate trade was seen in the North, with prices ranging from $120 to $121 live and $191 dressed, up $2 to $3 from the previous week. This slaughter volumes were a bit disappointing. This week slaughter volume is expected to be only modestly larger between 645–650,000 head. For a true verifiable rally in fed prices, slaughter volumes require a move to the 670,000 level. Feeder Cattle exchanged hands at levels steady to $4 higher. Calves were mostly steady to $3 higher. Market cows traded mixed, from $2 lower to $1 firmer.
BOXED BEEF: The Choice cutout closed the week $10.55 higher at 314.06, while Select over the same period advanced by $8.57 at $295.27. Late in the week, buyer appetite slowed. It would be interesting to see how this trend continues into next week’s prices. Looking into next week, when sellers try to attract customers in the market, asking prices should level out. If buyers’ immediate needs are satisfied, they may want to sit on the sidelines, putting downward pressure on prices by the end of the week. Last-minute Memorial Day and Father’s Day purchases can keep steak cuts at a minimum. If demand increases, other products can fail to find homes at current levels. At the very least, the cutout could be vulnerable to declines. Further into mid-summer, procurement for Independence Day will help the complex, but hamburgers normally do better than higher-priced foods. Aside from that, demand will be smaller and supply will be plentiful.
(USDA): USDA lowered corn ending stocks for the 2020-21 crop USDA lowered corn ending stocks for the 2020-21 crop 95 million bushels (mb) to 1.257 billion bushels (bb) on Wednesday, coming in slightly below the pre-report average projections and reflecting higher export demand. USDA sees tight soybean stocks continuing into the 2021-22 crop year. It left old-crop stocks unchanged at 120 mb, while providing only a meager increase to the new-crop situation at 140 mb. USDA on Wednesday released its monthly World Agricultural Supply and Demand Estimates (WASDE) report. The May report included, not only the use and ending stock estimates for the 2020-21 crops (old crop), but also the first breakdown of projected supplies and demand for the 2021-22 new crops that farmers are just now putting into the fields for corn and soybeans. Wednesday’s new U.S. ending stocks estimates were bearish for corn, neutral for soybeans and wheat. Meanwhile, world ending stocks estimates as bearish for corn, neutral for soybeans and bullish for wheat.