June 1

6/1 – Memorial Day kicked off the traditional “grilling season” in the U.S. Beef 90s trimmings averaged $2.52 per pound in May. And while that’s down from last year’s ground beef hoarding $2.91, it’s still well above an average of $2.22 for the month of May in 2018 & 2019. Meanwhile, we caught a break on beef 50s, which averaged $.79/lb in May vs. $2.08 in 2020 and an average of $.85 for 2018/19. Drought has dried up pasture and accelerated beef herd liquidation. As a result, beef production in May was 22% above last year’s Covid-decimated output, and 1.5% above 2018/19. Beef 90s trimmings closed at $2.57 on 5/28 and look to trade at $2.60 or better through mid-July. Beef 50s (at $.73) look to average mid-$.80s in June. Cattle futures are at 115.87/cwt (5/28). However, 2nd half 2021 forward contracts are averaging $123.45; and 2022 are $129.21/cwt.