Negotiated cash fed cattle trade was limited on light demand in Kansas, the Northern Plains and the western Corn Belt through Thursday afternoon, according to the Agricultural Marketing Service. Although too few to trend, there were a few dressed trades in Nebraska at $177/cwt., which was $1-$2 higher than last week, when live prices were $112 in the Southern Plains and $110-$112 up north.
Firmer Cattle futures and higher outside markets are helping foster optimism for higher cash prices.
The five-area weighted average steer price in December was $109.05/cwt., on a live basis (FOB), which was 20¢ higher than the previous month but $10.95 less than the previous year, according to USDA. The average steer price in the beef (delivered) was $170.94, which was 60¢ higher than the previous month but $20.24 less than the prior year.
Cattle futures closed mostly higher Thursday. Support included the likely need for packers to get cattle bought, in order to maintain the brisk processing pace. Feeder Cattle also benefitted from a pause in escalating Corn futures.
Live Cattle futures closed an average of 26¢ higher, except for 2¢ lower and 25¢ lower on either end of the board.
Feeder Cattle futures closed an average of $1.11 higher.
Choice boxed beef cutout value was 54¢ higher Thursday afternoon at $205.81/cwt. Select was 51¢ higher at $196.59.
The average dressed steer weight the week ending Dec. 25 was 913 lbs., according to USDA’s Actual Slaughter Under Federal Inspection report. That was 8 lbs. less than the previous week but 8 lbs. heavier than the same week a year earlier. The average dressed heifer weight of 839 lbs. was 8 lbs. less than the previous week but 2 lbs. heavier than the prior year.
Corn futures closed unchanged to 1¢ lower.
Soybean futures closed 3¢ to 6¢ lower through Sep ‘21 and then mostly 1¢ to 2¢ higher.
Major U.S. financial indices surged higher Thursday, buoyed in part by clarity surrounding the presidential election and fewer initial unemployment insurance claims than the trade expected.
For the week ending Jan. 2, initial unemployment insurance claims of 787,000 were 3,000 few than the previous week, according to the U.S, Department of Labor. The four-week moving average was 818,750, which was 18,750 fewer than the previous week’s revised average.
The Dow Jones Industrial Average closed 211 points higher. The S&P 500 closed 55 points higher. The NASDAQ up 326 points.
Digital recipes play a pivotal role in the path to purchase for grocery and consumer packaged goods (CPG), a pathway the Beef Checkoff is using to accelerate ecommerce growth of beef products.
First, some context.
Last summer, Chicory, the leading contextual commerce provider for CPG and grocery brands, released results from the first annual digital recipe usage survey, quantifying the role of digital recipes in the path to purchase. It demonstrated that recipes represent the number one reason a shopper purchases a new product, proving that recipes are a top strategy for getting new and lapsed shoppers to consider trying a brand that they haven’t recently considered.
“This survey confirmed that digital recipes play a pivotal role in the path to purchase for grocery and CPG products,” said Yuni Sameshima, Chicory’s CEO and co-Founder. “This validates the idea that recipes drive consumer behavior. Consumers use recipes to plan ahead for shopping trips, reference recipes in store and re-reference recipes after the shop as they cook. So, a contextual commerce strategy for grocery and CPG brands should integrate commerce-enabled ads within recipes to directly connect recipe and food inspiration to retailers’ sites for purchase.”
More specifically, according to the Chicory survey:
- 81% of respondents confirmed that they use digital recipes.
- Recipes are 19% more likely to inspire a shopper to try a new product than a recommendation of a family member or friend; 61% more likely than the item being featured or on sale at the retailer, and 78% more likely than an influencer recommendation.
- 82% of Americans responded that they reference digital recipes on their mobile devices while they are physically in the store.
- Baby boomers (18%) were least likely to use recipes. Millennials/Gen Z (48%) and Gen X (34%) were most likely to use recipes.
With all of that in mind, Chicory and the National Cattlemen’s Beef Association (NCBA) announced this week a partnership to raise the profile of beef to American consumers and accelerate ecommerce growth of beef products at Kroger and Kroger banners, Walmart Grocery and Albertson/Safeway banners.
NCBA is a contractor to the Beef Checkoff program and manager of the brand: Beef. It’s What’s for Dinner (BIWD). The Beef Checkoff is leveraging Chicory’s Digital Shopping Aisle experience for two media campaigns, as well as shoppable recipes on BeefItsWhatsforDinner.com.
“At a time when more people are shopping online than ever before, this partnership has allowed us to jump into the world of ecommerce and encourage consumers to enjoy delicious beef for dinner,” says Bridget Wasser, NCBA Senior Executive Director of Product Quality. “Beyond the media campaigns, the shoppable recipes take the work out of dinner from beefy meal ideas, to shopping and grocery delivery with the click of the mouse.”
Chicory’s first-to-market Digital Shopping Aisle solution enables commodity-focused groups to equitably represent beef manufacturers, while executing an effective shopper marketing and contextual commerce campaign. BIWD is utilizing Chicory Premium in recipe ad units to ‘own’ ingredients via in-line units and ‘pairings’ ads to feature products within related content in order to promote beef products in contextually relevant recipes on over 1,500 recipe sites, including Taste of Home, Creme de la Crumb and Fork in the Kitchen.
Consumers see ads that are shoppable at either Kroger and Kroger banners, Walmart Grocery or Albertson/Safeway banners based on retailer geography. Consumers who click on the Walmart Grocery or Albertson/Safeway banners shoppable ads are driven to Chicory’s unique Digital Shopping Aisle, showcasing the available beef products needed for the recipe, such as ground beef, steak and roasts, at a retailer. The Digital Shopping Aisle randomizes the available products that the consumer sees, ensuring a truly equitable experience for each brand and product. Here, shoppers may choose their preferred brand and add the product to their digital shopping cart for a seamless checkout experience. Consumers who click on the Kroger or Kroger banners shoppable ads are driven to customized Kroger landing pages with the various available cuts of beef to make their choice.
The partnership also provides a seamless way for BeefItsWhatsForDinner.com to lead users from inspiration to purchase through Recipe Activation, a commerce-enabled recipe checkout experience. Using Chicory’s shoppable recipe technology, users can purchase instantly all ingredients needed for any of the recipes on BeefItsWhatsForDinner.com.