Negotiated cash fed cattle trade sputtered back to life Wednesday, following last week’s Tyson fire. Live trade in the Southern Plains was at $105/cwt. on light to moderate trade and light demand, according to the Agricultural Marketing Service (AMS). That was $5 less than last week. Although too few to trend, there were also some early sales in the western Corn Belt at $105.00-$106.50 live and at $170-$172 in the beef.
Cattle futures surged higher, especially Feeder Cattle, as buyers took advantage of the oversold conditions created by massive selling the previous two sessions.
Other than an average of 55¢ lower in the front two contracts, Live Cattle futures closed an average of $1.61 higher.
Feeder Cattle futures closed an average of $5.18 higher, almost retracing what was lost in the previous day.
Wholesale beef values were sharply higher with good demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $5.98 higher Wednesday afternoon at $232.34/cwt. Select was $5.34 higher at $205.92. Packers continue to benefit from the price bounce tied to the recent supply disruption.
Corn futures closed 5¢ to 7¢ lower through May ’21, and then mostly 1¢ to 2¢ lower.
Soybean futures closed 10¢ to 11¢ lower across the board.
Major U.S. financial indices plunged steep and fast Wednesday, fueled by a brief inversion of the yield curve. That’s when the yield on the 10-year Treasury note drops below the 2-year rate. Based on history, many believe that’s the harbinger of economic recession within 18 months or so.
The Dow Jones Industrial Average closed 800 points lower. The S&P 500 closed 85 points lower. The NASDAQ was down 242 points.
Burgers are often thought of as being more affordable than other menu items, but as prices continue to rise at a faster rate than the average entree, this view may start shifting, according to Technomic’s 2019 Burger Consumer Trend Report.
“Price increases are offering operators a form of relief as they struggle with rising labor and delivery costs, as well as limited growth through traffic,” explains Charles Winship, manager of consumer insights at Technomic. “But continued price increases for burgers could ultimately cut into perceptions around their affordability and push consumers toward other options.”
Key takeaways from the report include:
42% of consumers who eat burgers strongly agree that they have a preferred restaurant they almost always go to for burgers.
46% of consumers who eat burgers strongly agree that they’ve noticed price increases for burgers at restaurants over the past year.
44% of millennials who eat burgers expect restaurants to offer at least one plant-based burger option.