Negotiated cash fed cattle trade was undeveloped through Wednesday afternoon, although there were some steady-money bids reported in the north.
Likewise, there were no sales in the weekly Fed Cattle Exchange auction, which had just 423 head on offer.
Prices were higher at some live fat auctions, though. Ch 2-3 steers weighing an average of 1,385 lbs. brought an average of $113.41/cwt. at Sioux Falls Regional in South Dakota. At Tama, IA, Ch 2-4 steers brought $114.90 at 1,312 lbs.
Cattle futures closed narrowly mixed, with more support in the deferred months as traders repositioned following the previous session’s sharp gains.
Live Cattle futures closed from an average of 26¢ lower across the front half of the board to an average of 7¢ higher across the back half.
Feeder Cattle futures closed from an average of 27¢ lower across the front half of the board to an average of 52¢ higher across the back half, except for unchanged in Jan.
Wholesale beef 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 31¢ lower Wednesday afternoon at $214.42/cwt. Select was $1.20 lower at $190.89.
Corn futures closed mainly 1¢ to 2¢ higher.
Soybean futures closed mostly 6¢ to 8¢ higher.
Plenty of folks will be watching for Thursday’s monthly World agricultural Supply and Demand Estimates.
Major U.S. financial indices closed higher Wednesday, buoyed by broad interpretation of Federal Reserve Chairman, Jerome Powell’s testimony to Congress meaning that a cut to interest rates is on the near horizon.
In prepared testimony to the U.S. House Committee on Financial Services, Powell explained:
“Our baseline outlook is for economic growth to remain solid, labor markets to stay strong, and inflation to move back up over time to the Committee’s 2% objective. However, uncertainties about the outlook have increased in recent months. In particular, economic momentum appears to have slowed in some major foreign economies, and that weakness could affect the U.S. economy. Moreover, a number of government policy issues have yet to be resolved, including trade developments, the federal debt ceiling, and Brexit. And there is a risk that weak inflation will be even more persistent than we currently anticipate. We are carefully monitoring these developments, and we will continue to assess their implications for the U.S economic outlook and inflation…
“In our June meeting statement, we indicated that, in light of increased uncertainties about the economic outlook and muted inflation pressures, we would closely monitor the implications of incoming information for the economic outlook and would act as appropriate to sustain the expansion. Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook. Inflation pressures remain muted…”
Crude Oil futures (WTI-CME) rallied $2.43 to $2.60 higher for the remaining 2019 contracts on a heavier domestic inventory draw than expected.
The Dow Jones Industrial Average closed 76 points higher. The S&P 500 closed 13 points higher. The NASDAQ was up 60 points.
“Digital purchasing will accelerate in food retailing, just as it has in other retail sectors where we see much higher rates of online purchases,” says David Portalatin, food industry advisor for the NPD group (NPD) and author of Eating Patterns in America. “Still, the brick and mortar grocery store will always be a necessary means of acquiring foods, especially those where consumers place a premium on their sensory assessment to ensure quality, like meats, fruits and vegetables. This gives forward thinking retailers and their vendor partners an opportunity to truly create an omnichannel experience for the consumer and revolutionize the way we think about grocery merchandising.”
According to NPD, 20% of U.S. consumers, ages 18 and above—about 51 million consumers—shopped online for groceries, within 30 days, for the quarter ending February this year. That was 3% more than the quarter ending in November of last year. The figures include consumers ordering online for delivery or in-store pick-up.
Of those who shop online for groceries from brick and mortar or pure-play online grocers, 16% order their food and beverages for delivery. The option to order online and pick-up in store, also known as click-and-collect or BOPUS (buy online pickup in store) is favored by 11% of online grocery shoppers. Seven percent of these shoppers mix it up and do both, according to NPD’s National Eating Trends® Omnichannel Scorecard.