Negotiated cash fed cattle trade for the week ended up steady to either side of steady with extremely light trade.
There were some live sales at $111/cwt. in Nebraska, compared to $109.00-$110.50 the previous week. A few sold in the beef at $177, compared to $176-$180 the previous week. Scattered sales in the Southern Plains were generally steady at $110. In the western Corn Belt, dressed sales were mostly $2-$4 lower than the previous week at $178.
Cattle futures meandered lower.
Except for 2¢ higher in away Jun, Live Cattle futures closed an average of 54¢ lower (15¢ lower in spot Jun to $1.12 lower).
Feeder Cattle futures closed an average of 60¢ lower (22¢ lower at the back of the board to $1.07 lower in spot Aug).
Boxed beef cutout values were weak for Choice and firm for Select Friday on light to moderate demand and offerings, according to the Agricultural Marketing Service (AMS).
Choice boxed beef cutout value was 67¢ lower in the afternoon at $227.53/cwt. Select was 33¢ higher at $204.80.
“Beef demand seems to be hitting on all cylinders with retailers featuring beef, which is promising. With the large supply of fed cattle, demand is exceeding expectations,” say AMS analysts. “The actual federally inspected cattle slaughter for week ending May 19 totaled 667,613, the largest weekly cattle slaughter since August 2011. Steer and heifer slaughter was also running at a pretty good clip for that week as near 540,000 were harvested, the largest total for those classifications since June 2011.”
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Major U.S. financial indices rebounded Friday from steep losses in the previous session. Support included a monthly employment report that was stronger than expected. Total non-farm payroll employment increased by 223,000 in May, according to the U.S. Bureau of Labor Statistics. The unemployment rate edged lower to 3.8%.
The Dow Jones Industrial Average closed 219 points higher. The S&P 500 closed 29 points higher. The NASDAQ closed 112 points higher.
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“Today’s consumer is a ‘pro-sumer,’ which means they are going to co-create their story and it’s about ‘Brand Me,’” explains Jeff Fromm, a partner at Barkley, a company that assists with establishing and enhancing brands and helping businesses identify emerging consumer trends. Fromm says consumers expect to have a seat at the table. If you’ve heard in the past that it’s just about being transparent, he says, our research suggests that’s going to get you a ‘C’ on your report card. In ‘Tomorrowland,’ you’re going to have to offer proof that the story you are living is real – which is a step beyond transparency.”
Fromm—the best-selling author of books that include Marketing to Millennials, Millennials with Kids and Marketing to Gen Z—spoke to an international audience at last week’s World Meat Congress in Dallas.
He explained that food has become more than just a category of products consumers buy and enjoy – it is also a means of expression.
“Today’s modern consumer expresses themselves through food,” Fromm says. “Discretionary purchases on food have increased at a dramatic rate, at a time when discretionary purchases on fashion haven’t. So they are trading ‘fashion’ for ‘food’ as a way to express themselves.”
Fromm emphasized that Farmers and ranchers, and those in meat processing and merchandising, absolutely must better connect with consumers by sharing details of the story behind their products.