Daily Market Highlights

Despite sharply lower outside markets, Cattle futures renewed gains on Tuesday, buoyed, in part, by notions that last week’s anemic trade volume of fed cattle means packers must step up to the plate this week. Moreover, all indications suggest cattle feeders remain plumb current in marketing.

Except for 22¢ higher and 37¢ higher on either end of the board, Live Cattle futures closed an average of 77¢ higher.

Feeder Cattle futures closed an average of $1.08 higher; an average of 79¢ higher across the front half and then an average of $1.37 higher.

Boxed beef cutout values were lower on light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.01 lower in the afternoon at $219.70/cwt. Select was $1.90 lower at $202.30.

******************************

Major U.S. financial indices closed sharply lower Tuesday, in the wake of President Trump doing exactly what he said he would do: apply more tariff pressure to China if that nation retaliated against tariffs levied last week.

“On Friday, I announced plans for tariffs on $50 billion worth of imports from China. These tariffs are being imposed to encourage China to change the unfair practices identified in the Section 301 action with respect to technology and innovation. They also serve as an initial step toward bringing balance to our trade relationship with China,” said President Trump, in a White House Statement. “However and unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports. China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong…Therefore, today, I directed the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10%. After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced. If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200 billion of goods. The trade relationship between the United States and China must be much more equitable.”

The Dow Jones Industrial Average closed 287 points lower. The S&P 500 closed 11 points lower. The NASDAQ closed 21 points lower.

******************************

“The weekly average fed steer price in the 5-area marketing region likely reached a second-quarter peak of $124.81/cwt. for the week ending May 6,” says analysts with USDA’s Economic Research Service, in the latest monthly Livestock, Dairy and Poultry Outlook. “During that week, the price was nearly $20 above the asking price of the June Live Cattle contract. Although the spread narrowed during the month, the prospect of lower prices during June likely influenced feedlot operations to promptly market their cattle.”

Although marginally improved, by at least one measure, feedlots will face heavy economic pressure for the remainder of the year.

“Currently, the net returns projected for closeouts in May are minus-$118.09/head for steers and minus-$80.18/head for heifers,” according to the most recent Historical and Projected Kansas Feedlot Net Returns from Kansas State University (KSU). “Current projections indicate losses spanning the rest of 2018, with some improvement from last month’s expectations. If realized fed cattle basis continues to be stronger than projected, then that will further improve returns.”

Analysts emphasize these estimated returns are on a cash-to-cash-basis, assuming no price risk management.

Estimated net returns for fed steers in Kansas feedlots decline from minus-$249.05/head in June to minus-$64.00 in December. Net returns for heifers decline from minus-$162.54 in June to minus-$37.41 in December.

When all was said and done in last week’s light volume of negotiated fed cattle trade, live sales were $2-$3 lower in the Southern Plains at $112-$113/cwt., $4-$5 less in Nebraska at $110 and $3-$5 less in the western Corn Belt at $110-$112. Dressed sales were $3-$6 lower at $176-$181.

Week to week on Monday, the 5-area weekly weighted average was $3.18 lower on a live basis at $111.28 and $5.20 lower in the beef at $177.55.

Cattle futures closed mixed on Monday, amid light trade and declining open interest in Live Cattle. Support in the front months included the surge to end last week. Pressure included lower fed cattle prices and wonderments about the impact of the U.S.-China tariff battle.

Live Cattle futures closed mixed from 45¢ lower to 55¢ higher.

Feeder Cattle futures closed an average of 77¢ higher across the front half of the board (47¢ higher to $1.00 higher in spot Aug) and then an average of 26¢ lower.

Boxed beef cutout values were lower for Choice and higher for Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 88¢ lower in the afternoon at $220.71/cwt. Select was $1.47 higher at $204.20.

******************************

Major U.S. financial indices closed mainly lower Monday, with pressure continuing from the brewing trade war between the U.S. and China.

The Dow Jones Industrial Average closed 103 points lower. The S&P 500 closed 5 points lower. The NASDAQ closed fractionally higher.

********************************

“In 2017, unexpectedly strong domestic and international beef demand provided extra support for cattle and beef prices in the face of growing beef supplies. To some extent, that has continued in 2018, though not as pronounced as a year ago,” says Derrell Peel, Extension livestock marketing specialist at Oklahoma State University, in his weekly market comments. “After holding quite firm through May, boxed beef prices were under pressure into mid-June with Choice boxed beef price dropping about $5/cwt. last week…Fed cattle prices have declined seasonally but are holding generally better than expected. Remember in early April when June Live Cattle futures dropped under $100/cwt. and have since traded as high as $110/cwt. and now are trading about $108.”  

A silver lining to the seasonal decline in fed cattle prices, is that wider packer margins provide ongoing incentive to keep harvesting cattle aggressively.

Year-to date cattle slaughter is 3.8% more than last year, driven by increases in female slaughter, according to Peel. He explains, “Heifer slaughter is up 8.0% year over year and cow slaughter is up 8.1%. Beef cow slaughter is up 12.2% and dairy cow slaughter is 4.5% more than last year. Steer slaughter is up a scant 0.1% year over year.”

Beef production is 3.6% more so far this year, but lighter year-to-year carcass weights, in part due to the aggressive marketing, mean slightly less production that originally anticipated.

“There are a variety of supply and demand factors to watch in the second half of the year,” Peel says. “Beef production will be determined by slaughter rates, but even more by carcass weights moving forward. Drought conditions do not appear to be causing significant herd liquidation at this time, but the threat is still there. Further, slowing of heifer retention and herd growth (in part due to drought conditions) continues to add to female slaughter and could continue through the end of the year.”

Ultimately, the outcome of current trade trials will also have plenty to say about beef’s fortunes.

“The uncertainty, volatility and reality of a trade war will likely have greater negative impacts on beef and other markets in the second half of the year,” Peel says. “Beef trade in early 2018 has been very supportive to cattle and beef markets, but this could change going forward. Beef markets may be directly impacted in terms of exports, but significant, if not bigger impacts, may be the indirect result, for example, of reduced pork exports and increased domestic supplies of competing meats.”

Cattle futures surged higher Friday, recovering much of the week’s decline. Perhaps bears are finally convinced the bad news of stout summer supplies took the last train out a while back.

Live Cattle futures closed an average of $2.34 higher through the front four contracts and then an average of $1.45 higher.

Negotiated cash fed cattle trade remained undeveloped through late Friday afternoon. The previous week’s stronger prices, as well as the surge in Cattle futures Friday likely added to seller reluctance. On the other end of the trade, it could be that heavy out-front purchases in recent weeks enabled packers to be more patient.

Except for 82¢ higher in the back contract, Feeder Cattle futures closed an average of $3.12 higher ($2.62 higher to $4.30 higher in spot Aug).

Boxed beef cutout values were weak on Choice and higher for Select with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 49¢ lower in the afternoon at $221.59/cwt. Select was 76¢ higher at $202.73.

******************************

Major U.S. financial indices closed lower Friday, but well off of session lows. Primary pressure was attributed to President Trump saying the U.S. will impose a 25% tariff on up to $50 billion of Chinese imports, followed by Chinese officials vowing retaliation in kind.

The Dow Jones Industrial Average closed 84 points lower. The S&P 500 closed 2 points lower. The NASDAQ was down 14 points.

******************************

Odds of an all-out trade war between the U.S. and China spiked higher Friday with the White House saying it will impose new tariffs—first threatened in April—on Chinese imports beginning July 6.

“In light of China’s theft of intellectual property and technology and its other unfair trade practices, the United States will implement a 25% tariff on $50 billion of goods from China that contain industrially significant technologies,” said President Trump Friday. “The United States will pursue additional tariffs if China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products; raising non-tariff barriers; or taking punitive actions against American exporters or American companies operating in China.”

The news contributed to strong pressure on domestic grain markets Friday, especially soybeans.

By Saturday morning, China did retaliate. Citing a statement from the Ministry of Finance of the People’s Republic of China, various reports explained China is imposing new tariffs on about $50 billion worth of U.S. imports, including soybeans and pork.

“We must take strong defensive actions to protect America’s leadership in technology and innovation against the unprecedented threat posed by China’s theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks,” said Ambassador Robert Lighthizer. 

In the meantime, hopefully negotiators will heed market comments made in early April by Derrell Peel, Extension livestock marketing specialist at Oklahoma State University: “As we work through the escalating trade tensions that are currently roiling markets, it will be beneficial if all sides remember that trade adds value and is not a zero-sum game.”

Domestically, Andrew P. Griffith, agricultural economist the University of Tennessee points out in his weekly market comments that consumer beef demand was 3.2% more year over year in the first quarter this year.

Although beef production continues to increase, Griffith explains retail beef prices continue at similar levels to last year.

Beef production year to date is 3.7% higher than the same time period in 2017 and 8.3% greater than the same 23-week period in 2016, according to Griffith.

“The all-fresh beef retail price for May was $5.68/lb., which is 7¢ lower than April and 5¢ higher than May one year ago. In the past 24 months, the all-fresh beef retail price has averaged $5.66/lb., with a low of $5.49 in January 2017 and a high of $5.85 in June 2016,” Griffith says.

Cattle futures closed solidly lower Thursday amid trade worries, pressure on commodities overall, lower wholesale beef prices and the lack of cash direction.

Live Cattle futures closed an average of $1.60 lower (92¢ at the back of the board to $2.12 lower).

Feeder Cattle futures closed an average of $1.61 lower.

Boxed beef cutout values were weak to lower on light to moderate demand and moderate to heavy offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.82 lower in the afternoon at $222.08/cwt., the lowest since the end of April. Select was 33¢ lower at $201.97.

******************************

Major U.S. financial indices closed mixed Thursday. Support came from media and tech stocks, including Comcast’s announced bid for major portions of Twenty-First Century Fox.

The Dow Jones Industrial Average closed 25 points lower. The S&P 500 closed 6 points higher. The NASDAQ was up 65 points.

******************************

Convenience is trumping some of the concerns consumers previously had about shopping online for groceries, such as higher costs, fees or waiting for delivery, according to the NPD Group (NPD).

In early 2017, NPD reported that 6% of U.S. consumers shopped online for groceries. That’s now up to 16%, or over 52 million people, shopping online for groceries, using either delivery or click-and-collect. 

Keep in mind that it was about a year ago when Amazon announced its plans to acquire Whole Foods, ultimately pressing brick-and-mortar national grocery retailers to move faster toward offering online delivery and pickup services.

Amazon Prime members, men, and young adults and those who find grocery shopping a necessary evil were among the first groups to shop for their groceries online, according to NPD. At the same time, growth in click-and-collect and speedy delivery options launched by major grocery chains expanded the appeal of online shopping to the broader population.

“This past year has been a game of one-upmanship among the major grocery chains,” says Darren Seifer, NPD food and beverage industry analyst. “We went from two-day delivery, to one-day, to same-day, to two-hour delivery; with the speed of delivery being defined in superlatives, like fast to ultra-fast. It’s been a fascinating year and the best part about it is that in the end, consumers are the winners of the game.”    

The NPD folks point out that online grocery shoppers take an omnichannel approach and still shop at brick-and-mortar grocers, too.   

Only 596 head were offered in the weekly Fed Cattle Exchange Auction. There were no sales, but two lots of heifers (287 head) passed out at $110 and $112/cwt.

Cattle futures edged lower amid light trade and uncertainty about the week’s cash direction.

Live Cattle futures closed an average of 38¢ lower.

Feeder Cattle futures closed an average of 62¢ lower (15¢ to $1.30 lower).

Boxed beef cutout values were lower on light to moderate demand and moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.02 lower in the afternoon at $223.90/cwt. Select was $1.09 lower at $202.30.

******************************

Major U.S. financial indices closed lower Wednesday, under pressure from the notion that the Fed will increase interest rates two more times this year, rather than one, as previously expected. That’s after the widely anticipated hike in interest (+0.25%) Wednesday.

“Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate,” according to a statement from the Fed. “Job gains have been strong, on average, in recent months, and the unemployment rate has declined. Recent data suggest that growth of household spending has picked up, while business fixed investment has continued to grow strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2%. Indicators of longer-term inflation expectations are little changed, on balance.”

The Dow Jones Industrial Average closed 119 points lower. The S&P 500 closed 11 points lower. The NASDAQ was down 8 points.

******************************

“The seasonality of heifer slaughter is likely changing as the herd size has recovered from the drought and expansion is slowing,” says David Anderson, Extension economist with Texas A&M AgriLife Extension Service.

In the most recent issue of In the Cattle Markets, Anderson explains, over the lasy several years, heifer slaughter tended to be seasonally low from about May-July, as herd expansion meant more heifer retention and fewer heading to the feedlot. Now, fewer heifers are being retained.

“Fed heifer slaughter is up about 17% over the last six weeks, using the daily slaughter data and estimating the first two weeks of June. Going back to the first of April, fed heifer slaughter is up about 16% compared to a year ago,” Anderson says. “Cattle slaughter surged over the last six weeks with weekly slaughter over 650,000 head every week since the first of May, except the Memorial Day- shortened week. Total cattle slaughter is up about 9% compared to the same period a year ago. Much of the year-over-year increase in slaughter is from heifers.” He adds that total weekly slaughter levels in May were the most for the month since May 2013.

Although there are more heifers on feed this year, Anderson says, “It is about the same as the number on feed, on average, over the 2007-2012 period before the drought and during the herd adjustments to ethanol-fueled feed costs.”

Cattle futures moved solidly lower Tuesday after early follow-through support. The surge higher in corn prices helped Live Cattle eke out a mostly positive close but kept pressure on Feeder Cattle. Keep in mind that trade was light in both pits.

Except for 12¢ lower and 25¢ lower on either end of the board, Live Cattle futures closed an average of 26¢ higher.

Except for unchanged in the back two contracts, Feeder Cattle futures closed an average of 57¢ lower (15¢ to 82¢ lower).

Boxed beef cutout values were steady to firm on light to moderate demand and light offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 21¢ lower in the afternoon at $224.92/cwt. Select was 59¢ higher at $203.39.

******************************

Major U.S. financial indices closed mostly narrowly mixed Tuesday, with the NASDAQ receiving a boost from a U.S. District Court ruling in favor of the proposed merger between Time Warner and AT&T.

The Dow Jones Industrial Average closed 1 point lower. The S&P 500 closed 4 points higher. The NASDAQ was up 43 points.

******************************

Projected beef production for this year was lowered by 90 million lbs. in the most recent World Agricultural Supply and Demand Estimates (WASDE), on lower carcass weights more than offsetting increased steer, heifer and cow slaughter in the second quarter. Estimated beef production for this year is 27.125 billion lbs. Estimated beef production next year is 27.175 billion lbs.

The average 5-area Direct fed steer price is projected at $116-$119/cwt. for the second quarter, $106-$112 for the third quarter and $108-$116 for the fourth quarter. The annual price was reduced $1 on the upper end of the range to $114-$118; the projection for 2019 is $113-$122.

WASDE projects ending corn stocks 105 million bu. lower to 1.577 billion bu. If realized, that would be the lowest level since 2013-14. The season-average farm price for corn was raised 10¢ at the midpoint with a range of $3.40 to $4.40/bu. 

Projected ending stocks for wheat are 9 million bu. lower than the previous month to 946 million bu. The projected season-average farm price for wheat is up 10¢/bu. with the midpoint at $5.10/bu., compared to the revised 2017-18 price of $4.75.

Soybean ending stocks were projected 25 million bu. less for 2017-18 and 30 million bu. less for 2018-19, but the price forecast was unchanged. The 2018-19 season-average price for soybeans is forecast at $8.75 to $11.25/bu. Soybean meal prices are projected at $330 to $370/short ton. Soybean oil prices are projected at 29.5¢ to 33.5¢/lb. 

Negotiated cash fed cattle trade ended up sharply higher last week: $5 higher on a live basis in the Southern Plains at $115/cwt., $3-$5 higher in the western Corn Belt at $115 and $3-$4 higher in Nebraska at $114-$115. Dressed trade was $5-$7 higher at $182-$184.

Cattle futures moved higher through much of the session Monday, buoyed by follow-through support from last week’s higher cash fed cattle trade. By the end of the day, though, futures closed solidly lower, most likely on profit taking.

Except for 12¢ higher in the back contract, Live Cattle futures closed an average of $1.12 lower (75¢ to $1.25 lower).

Except for an average of $1.25 lower in the front two contracts, Feeder Cattle futures closed an average of 50¢ lower.

Boxed beef cutout values were weak to lower on moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was $1.08 lower in the afternoon at $225.13/cwt. Select was 38¢ lower at $202.80.

******************************

Major U.S. financial indices closed little changed Monday.

The Dow Jones Industrial Average closed 5 points higher. The S&P 500 closed 2 points higher. The NASDAQ was up 14 points.

******************************

“In the U.S. wholesale meat marketplace, robust exports have been a factor cushioning beef prices against large supplies,” notes Jim Robb, director of the Livestock Marketing Information Center (LMIC), in this week’s Cow-Calf Corner. “In the World Agricultural Supply and Demand Estimates (WASDE) issued last month by USDA, their forecast was for U.S. beef exports in 2018 to be 3.03 billion lbs., 6% above 2017’s. That would be the first time for foreign sales to exceed 3 billion pounds. Year-to-date trends are on the path to reach that level.”

Of course, assorted trade issues percolating currently will have plenty to say about ultimate export reality.

“More than just insights into actual policy changes and tariff rates are required to forecast exports,” Robb explains. “For example, in the current world economic environment, exchange rates adjustments can have a significant impact on the price paid by a foreign buyer for U.S. agricultural products. Exchange rates are determined by macroeconomic forces and by sectors much bigger than the agriculture and food trade sphere. That is, exchange rates are realistically exogenous, using an economics term, to the trade of agricultural and food products. The value of the Mexican peso could drop versus the U.S. dollar, mitigating, at least partially, the short-term impacts of any new tariffs on U.S. exports to that country.”

By late Friday afternoon, cash fed cattle trade remained mostly undeveloped. Although too few transactions to trend, higher money was reported in Nebraska at $114/cwt. on a live basis, which was $2.50-$3.00 higher than the previous week. Early live sales in the western Corn Belt were at $114-$115 ($3-$4 higher); early dressed sales were $4-$6 higher at $182. Late in the day, the Texas Cattle Feeders Association reported its members trading live cattle at $115, which was $5 higher than the previous week.

Expectations for stronger cash trade helped boost Cattle futures Friday, extending the week’s gains.

Live Cattle futures closed an average of $1.44 higher through the front three contracts and then an average of 28¢ higher (7¢ to 62¢ higher).

Feeder Cattle futures closed an average of 69¢ higher (27¢ higher to $1.20 higher in spot Aug). 

Boxed beef cutout values were steady on moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 20¢ lower in the afternoon at $226.21/cwt. Select was 23¢ lower at $203.18.

****************************

Major U.S. financial indices closed higher Friday, amid generally positive economic news.

The Dow Jones Industrial Average closed 75 points higher. The S&P 500 closed 8 points higher. The NASDAQ was up 10 points.

******************************

Brazilian interests now own a substantial chunk of the U.S. beef packing business.

That comes with last week’s announcement that Marfrig Global Foods received final authorization for its acquisition of a 51% interest in National Beef Packing Company, LCC. The pending sale was announced in April, with the Brazilian company paying $969 million (U.S.) for the controlling interest.

According to a statement from National Beef at the time, “The operations and management of National Beef will remain unchanged with Tim Klein continuing as National Beef President and Chief Executive Officer upon completion of the transaction. The current owners of National Beef will continue as owners under the new structure.” At the time, Leucadia National Corp. was the majority owner, having acquired a majority interest in National Beef at the end of 2011.

With the sale, Brazilian interests now own a substantial chunk of the U.S. beef packing business.

Brazilian-owned JBS USA is the nation’s second largest beef packer in terms of sales, according to data compiled by CattleFax and presented in Directions statistics from the National Cattlemen’s Beef Association. National is fourth largest in terms of beef sales. Based on net sales (all meats), according to the National Provisioner, JBS was second largest in the U.S. last year, and National Beef was seventh largest (Tyson was largest and Cargill was third largest).

Early follow-through support faded in Cattle futures yesterday, leading to a marginally lower close. The week’s negotiated cash fed cattle trade remained undeveloped through late afternoon.

Except for 7¢ higher in spot Jun and 2¢ higher in Apr, Live Cattle futures closed an average of 14¢ lower.

Other than 50¢ and 10¢ higher at the back of the board, Feeder Cattle futures closed an average of 39¢ lower. 

Boxed beef cutout values were weak on Choice and steady on Select, with light to moderate demand and offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 56¢ lower in the afternoon at $226.41/cwt. Select was 24¢ lower at $203.41.

******************************

Major U.S. financial indices closed mixed Thursday.

The Dow Jones Industrial Average closed 95 points higher. The S&P 500 closed 1 point lower. The NASDAQ was down 54 points.

******************************

U.S. beef exports continue at a steamy pace, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

Beef export volume in April (111,213 mt) was 11% more than a year earlier. Export value was 23% higher at $676.7 million, the fourth-highest on record. Through the first four months of 2018, exports were up 10% in volume (429,286 mt). Export value was 20% more than last year’s record pace at $2.59 billion.

Beef export value averaged $328.46 per head of fed slaughter in April, up 16% from a year ago. Through April, per-head export value averaged $318.91, up 17%.

Even with growth in red meat production, both pork and beef exports accounted for a larger share and contributed more dollars per head, indicating strong international demand, according to USMEF.

U.S. pork exports set a new volume record in April (230,049 mt), which was 13% more than a year ago. Export value was also 13% more ($584.1 million).

While Japan maintained its position as the leading volume and value market for U.S. beef, momentum continued to build in South Korea, where April exports were up 62% from a year ago in volume (19,185 mt) and 72% in value ($134.8 million).

“The enthusiasm for U.S. beef in these markets may be at the highest level I’ve ever seen,” says Dan Halstrom USMEF President and CEO. “In nearly every segment of the retail and restaurant sectors, U.S. beef is attracting new customers with a wider range of cuts and menu items. It’s an exciting trend that’s not just limited to Japan and Korea, with U.S. beef’s popularity also strengthening in other Asian markets and in the Western Hemisphere.”

Strong follow-through buying in Cattle futures ran out of steam by the end of the session Wednesday, though markets were able to retain the previous day’s gains and add a bit. Trade tensions and lingering uncertainties about burgeoning beef supplies continue to help limit advances.

Except for 2¢ lower in away Aug, Live Cattle futures closed an average of 32¢ higher ($1.10 higher in spot Jun).

Feeder Cattle futures closed an average of 77¢ higher (from 62¢ to $1.47 higher).

Support came from growing notions that cash fed cattle can trade higher this week.

For instance, slaughter steers sold mostly $2 higher at Sioux Falls Regional in South Dakota; $111-$115/cwt. for Ch 2-3.

There were only 568 head offered in Wednesday’s weekly Fed Cattle Exchange auction, for delivery at 1-9 days. There were no takers; two lots (155 steers and 51 heifers) were passed on at $110/cwt.

Boxed beef cutout values were weak to lower Wednesday on light demand and light to moderate offerings, according to the Agricultural Marketing Service.

Choice boxed beef cutout value was 61¢ lower in the afternoon at $226.97/cwt. Select was $2.20 lower at $203.65.

******************************

Major U.S. financial indices closed sharply higher Wednesday, driven by rallying bank stocks, tied to higher interest rates.

The Dow Jones Industrial Average closed 346 points higher. The S&P 500 closed 23 points higher. The NASDAQ was up 51 points, closing at a record high.

******************************

“It’s clear by the growth in plant-based protein case shipments to foodservice and restaurant operators that this category has mainstreamed beyond those who choose a meatless diet,” says David Portalatin, industry advisor for The NPD Group’s (NPD) Food Sector. Case shipments from broadline foodservice distributors to independent and micro-chain restaurant operators  were 19% higher for the year ending in March.

In a recent NPD survey, 14% of U.S. consumers (more than 43 million consumers) regularly use plant-based alternatives such as almond milk, tofu, and veggie burgers, and 86% of them don’t consider themselves vegan or vegetarian. The heaviest users of plant-based foods are those who are more likely to be on a diet or to have a medical condition, and consumers who tend to think of food as fuel, are more convenience-oriented than others and less confident in their cooking skills.

Beef alternatives are driving growth in the category. Specifically, according to NPD, beef alternatives make up 44% of the plant-based categories being shipped to independent and micro-chain restaurant operators. Burgers are the largest beef alternative category but ball products, like meatless meatballs, used as ingredients have outpaced burgers and all other plant-based protein formats in terms of growth.