The 2019 beef production forecast was reduced marginally from the previous month to 27.2 billion pounds as expected fourth-quarter production more than offset a slight increase in expected second-quarter production.

Corn price futures for the December 2019 contract increased from $3.79 per bushel for the week ending May 10 to $4.55 for the week ending June 28.

May exports of U.S. pork and beef were steady with last year’s strong volumes and increased year-over-year in value, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

The past year has been marked by several trade disputes between the U.S. and key trade partners. According to an online poll, producers consider China the most vital U.S. trade partner.

Total federally inspected beef production was 12.1 billion pounds in the first 24 weeks of 2019, up just 0.7% from the same period last year. That is an average production of 502.4 million pounds per week – an amazing number if you think about it. Given that there is little storage of beef beyond pipeline supplies, it means that roughly 500 million pounds of a wide range of beef products are moving through a vast array of retail grocery, restaurant, food service and export markets every week. It is an enormous and complex set of markets.

The volatile trade negotiations that have taken place between the U.S. and Mexico over the last few months are leaving the U.S. beef industry on edge and unsure of the future.

The initial forecast for 2020 commercial beef production is expected to set a record of 27.5 billion pounds, surpassing by almost 1% what is expected to be a record level in 2019. Total cattle slaughter is expected to be lower than 2019, as lower cow slaughter more than offsets higher fed cattle slaughter.

April exports of U.S. beef and pork were lower than a year ago, while U.S. lamb exports continued their upward trend, according to data released by the USDA and compiled by the U.S. Meat Export Federation (USMEF).

The past several months have seen considerable volatility in cattle and grain markets, and it is doubtful the volatility will fall off over the next several weeks. Repeated storms across the Upper Midwest have delayed a lot of corn planting that will likely become soybean plantings. The immediate forecast shows little prospects of drying out and heating up, and the continuous trade-related surprises … Well, at this point in time, I am less surprised. I would be surprised without the emergence of news or announcement, and a Cattle on Feed report. Let's talk about that.