Last Friday, the USDA released a plethora of data important to the restaurant industry. While ArrowStream economists weren't surprised on grains expectations, they did comment on the increase of protein supply expectations.
"The USDA made some notable changes to its protein production forecasts for the rest of this year and next, boosting beef, pork, and chicken. Despite this, the USDA sees output tracking below year-ago levels in three of the next four quarters with annual declines in beef, pork, and chicken. Hard to argue with them here as the economy sputters and margins for producers are erratic. This could be supportive of protein prices later this year and into 2021. Still, protein supplies are projected to become concerning after this summer."