Cattle futures paused and retraced Tuesday following the previous day’s gains and awaiting cash direction.
Feeder Cattle futures closed an average of $1.72 lower ($1.35 to $2.90 lower).
Live Cattle futures closed an average of 45¢ lower (35¢ to 80¢ lower).
Negotiated cash fed cattle trade was at a standstill through Wednesday afternoon in the Southern Plains and Nebraska, according to the Agricultural Marketing Service. In the Western Corn Belt, trading was inactive on very light demand with too few trades for a trend.
Last week, live prices were $156/cwt. in the Southern Plains, $153-$156 in Nebraska and $152-$157 in the western Corn Belt. Dressed prices were $248.
Choice boxed beef cutout value was $1.02 lower Wednesday afternoon at $265.07/cwt. Select was 14¢ lower at $252.78/cwt.
Corn futures closed mostly 1¢ to 5¢ higher.
KC HRW Wheat closed mostly 3¢ to 5¢ higher through May ’24 and then mostly 2¢ lower
Soybean futures closed fractionally lower to 17¢ lower through Jan’24, then mixed.
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Major U.S. financial indices rallied Wednesday as Fed Chairman Jerome Powell announced a quarter percentage point interest rate increase, notching another slowdown in the Fed’s rate hikes. In a press conference, Powell said, “We can now say for the first time that the disinflationary process has started.”
Inflation numbers have been easing for the past three months but are still higher than the 2% target the Fed would like to see.
The Dow Jones Industrial Average closed 6 points higher. The S&P 500 closed 42 points higher. The NASDAQ was up 231 points.
West Texas Intermediate Crude Oil futures (CME) closed $2.38 to $2.46 lower through the front six contracts.
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Consumer demand for beef remains strong overall with more than two-thirds of consumers reportedly eat beef on a weekly basis, or more, according to the Today’s Beef Consumer report from the National Cattlemen’s Beef Association (NCBA), a contractor to the Beef Checkoff.
“During the pandemic consumers were forced to cook at home and many have continued to do so as it has become a popular way to make a dollar stretch and combat inflation,” according to the report, which was released Wednesday. The report found 76% of meals are now cooked at home and 94% of consumers who are cooking more at home say they will continue to do so.
“In 2022 fresh ground beef accounted for 50% of volume of beef sales, likely due to the lower price point as well as a renewed consumer interest in comfort foods and nostalgic recipes, like meatloaf,” according to the report.
Report analysts explain inflation is top of mind with 78% of consumers noticing an increase in the price of food whether at retail or foodservice. However, beef has experienced far lower levels of inflation when compared to other proteins in the “food at home” category.
As for food service, beef sales in both dollars and volume rebounded to surpass the pre-pandemic level of 2019.