The remainder of the losses of two weeks ago were largely recovered this week, especially for the remaining 2014 contracts. The market is still uncertain of what direction the 2015 contracts need to be in, but those contracts still ended the week in positive territory. Cash fed cattle and beef prices provided the bulk of the support. Macro-economic data continue to be positive and, therefore, provide support on the demand side. This week's Cold Storage report, showing the quantity of meat in freezers, revealed shrinking supplies of all major meats (beef, pork, and chicken) - (click HERE for some commentary on the report). However, signs indicate that the broiler industry has been ramping up production which may add pressure. The Cattle on Feed report indicated that light weight placements of cattle into feedlots were higher, but this was more than offset by smaller heavy weight placements.
Corn prices continue to be under pressure. The condition of the crop looks good, borderline great (76% of the crop is rated Good or Excellent). Many corn market analysts expect yields to be north of 170 bushels per acre, which would likely push total production above 14 billion bushels.

Wholesale boxed beef prices were higher. Choice boxes averaged $253.77, up $3.62. Select boxes ended the week at an average of $249.15, up $5.62. The strength was carried on the back of "low-value" cuts like round and chuck which improved on the week, while "high-value" cuts like ribeye and sirloin moved lower.