Despite the weekly dip, wholesale beef prices are rising sharply, with the weekly choice cutout value nearing $400/cwt. The choice-select spread is also 32% smaller than last year, driven by tight supplies and continued strong consumer demand.
At the retail level, beef prices showed mixed results in May. While roast and steak prices dropped, ground beef prices increased. Even with small monthly changes, retail beef remains more expensive than it was a year ago.
Grain markets remained stable following today’s acreage and grain stocks reports, with results matching pre-report estimates. Lower feed costs continue to support feeder margins, especially in a tight supply environment.
Looking ahead, macroeconomic risks and potential feed cost spikes are factors to monitor. Livestock health concerns, including screwworm outbreaks, also remain on the radar. Still, “market fundamentals continue to point to strong prices year-over-year.”
Feeder cattle prices may soften in the fall as weaned calves enter auction barns, but declines are expected to be limited due to ongoing supply constraints.