The five year average is 575 million lbs. for the end of May. Allendale's estimate represents a decrease of 33 million lb. from the previous month. The five year average month to month change for May is a 26 million lb. decrease.

Beef stocks, at 378 million lbs., are above the five year average of 442. This month's number represents a 24 million lb. draw-down from the previous month. The five year average change is a 9 million lb. decrease.

Cattle On Feed

May Placements are expected to be 7.9 per cent lower than last year. USDA's cattle feeding margin ended the month with $146 per head profits on outgoing cattle.

While there are still profits on outgoing cattle, feedlots are showing resistance against high priced feeders. These are penciling losses of $150 to $250 per head.

Corn averaged $4.97 in Western Kansas in May ($5.02 in April, $6.98 in May 2013). May placements help supply the October through January slaughter period.

Allendale anticipates a Marketing total 8.1 per cent lower than May 2013. There was a 3.7 per cent calendar day adjustment this month. This would be the smallest May Marketing in the current data that goes back to 1996. The bulge in Marketings expected in June and July is now in question. Either feedlots are holding market-ready numbers back or USDA's winter placement data was incorrect.

Total Cattle on Feed as of June 1 now totals 1.1 per cent under last year.

**Pork Belly stocks are estimated in million pounds while Cattle on Feed is estimated as a percentage compared to last year.

Cattle on Feed due to be released on Friday, June 20 at 2 pm Central Daylight Time.

Cold Storage due to be released on Monday, June 23 at 2 pm Central Daylight Time.