Negotiated cash fed cattle prices were $2-$3 higher than last week in the Southern Plains on Thursday at $120-$121/cwt., on moderate trade and good demand. Though too few to trend, prices elsewhere were generally steady.
Even so, Cattle futures closed lower, weighed down in part by month-end position squaring and sagging wholesale beef values.
Choice boxed beef cutout value was $1.91 lower Thursday afternoon at $204.64/cwt. Select was $1.63 lower at $184.21. That’s about $4 lower for Choice in the last two days; $3 lower for Select.
Live Cattle futures closed an average 92¢ lower (57¢ to $1.62 lower).
Feeder Cattle futures closed an average of $1.26 lower (77¢ to $1.55 lower).
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Major U.S. financial indices closed sharply higher on Thursday, led by a herculean bounce for the Dow. More than anything, optimism appeared tied to the increasing likelihood that the Senate would pass its tax reform proposal later in the day. Never mind that if and when that happens, there’s still lots of hammering left between the House and Senate.
The Dow Jones Industrial Average closed 331 points higher. The S&P 500 closed 21 points higher. The NASDAQ closed 49 points higher.
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Restaurant operators are more optimistic about higher sales for the next six months than they’ve been in two years, according to the latest Restaurant Performance Index (RPI) from the National Restaurant Association (NRA).
The RPI−comprised of a Current Situation Index and one for Expectations−edged 0.2% higher in October than the previous month to 100.9. That was on the back of the expectations index, which was up 0.8% to 102.4, the highest level in eight months.
All told, 44% of restaurant operators expect higher sales in six months−compared to the same period a year earlier. That’s 11% more than the previous month and the most in two years.
Conversely, the Current Situation Index declined for the fourth consecutive month, down 0.3% in October to 99.5. October was the second consecutive month the index was below 100, which indicates industry contraction.