Weekly wholesale prices for 50% lean beef have risen sharply the last three weeks and likely pulling 90% lean prices higher as well.
Tyler Cozzins, director of the Livestock Marketing Information Center in Denver, said in a telephone interview that 90% lean beef prices set a record high last week at $394.94 per cwt, up from the previous record set the week before at $389.12. But 50% lean beef at last week’s price of $184.46 per cwt didn’t come close to the previous record high of $275.28 set May 9, 2002.
The strength may be attributed to fill-in purchases from grinders responding to strong consumer demand ahead of the Independence Day holiday, a market analyst said. When the short-term, fill-in demand is gone, prices may drop back toward the 2019-2023 average.
50% LEAN ROCKETS HIGHER
Weekly prices for 50% and 90% lean beef have been higher than the same week last year every week, although there were a few weeks in late April through most of May where they were less than the previous five-year average.
But even if they haven’t set a record high this year, the weekly price rise of 50% lean beef the last three weeks has been impressive. Last week, the price was listed by the LMIC at $184.46 per cwt, up $39.00, or 26.8%, from $145.46 a week earlier, which was up $11.94, or 8.92%, from $133.52, which was up $6.61, or 5.21%, from $126.91.
And, while the price gains of the last three weeks have been impressive, the latest rally began the third week of May when the market jumped to $121.46 per cwt from $110.12. This makes for a gain of $74.34, or 67.5%, in six weeks.
90% LEAN SETS NEW HIGH
While the flash jump of 50% lean beef gets the attention of readers looking at a line graph, 90% lean beef prices have set new highs the last two weeks.
The weekly price for 90% lean beef has run at higher levels than last year in every week of 2025. They also have followed last year’s trend much more closely than the 2019-2023 average – just at higher levels.
As a result, the weekly price prices on a line graph and their comparisons with last year and the previous five-year average can drift by almost unnoticed.
Last week’s price for 90% lean beef was $394.94 per cwt, up $30.80, or 8.46%, from $364.14 a year earlier and up $128.66, or 48.3%, from the average of $266.28.
The weekly price of 90% lean has a seasonal tendency to fade off into December from here.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $229.67 per cwt to $235.86, compared with last week’s range of $225.15 to $243.37 per cwt. FOB dressed steers, and heifers went for $364.00 per cwt to $373.15, compared with $353.24 to $379.61.
The USDA choice cutout Wednesday was up $0.69 per cwt at $394.94 while select was down $6.12 at $376.29. The choice/select spread widened to $18.65 from $11.84 with 84 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $397.77 per cwt, and 50% beef was $229.09.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.25 to $1.35 a bushel over the Jul corn contract, which settled at $4.10 1/4, down $0.06.
No live cattle delivery notices were posted.
The CME Feeder Cattle Index for the seven days ended Tuesday was $310.60 per cwt, up $0.27. This compares with Wednesday’s Aug contract settlement of $302.30, up $0.05.