BEEF

Prices will take on a mostly steady tone through the end of the month, resisting the normal trend for values to firm going into Memorial Day. Buyers have assumed a less aggressive purchasing bias as U.S. feedlots remain very front-loaded with fed cattle supplies, removing concerns that supplies will be tighter going into summer. Furthermore, fed cattle are being processed at dressed weights 4% higher than last year, putting more supplies of beef on the market than expected. Retail demand will vary by primal in coming weeks, however softer disposable income and lower savings rates will influence beef demand. Foodservice demand tends to fall off going into the summer months, a trend that will be enhanced this year by the high cost of eating in restaurants as compared to at-home dining.