Although increasing Corn futures capped gains, Live Cattle futures closed higher again Tuesday, helped along by resurgent Lean Hogs. Feeder Cattle futures mostly edged higher.
Live Cattle futures closed an average of 47¢ higher.
Except for unchanged in Nov and 5¢ lower in Jan, Feeder Cattle futures closed an average of 5¢ higher.
Corn futures closed 2¢ to 4¢ higher through Sep ’20 and then mostly 1¢ higher.
Soybean futures closed 1¢ to 2¢ lower through Aug ’20 and then unchanged to fractionally mixed.
Wholesale beef values were steady to firm on moderate to good demand and moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 46¢ higher Tuesday afternoon at $213.78/cwt. Select was 12¢ higher at $189.71.
Major U.S. financial indices closed higher Tuesday, with announcement that the U.S. and China will resume trade talks in person next week. Better than expected quarterly earnings reports from the likes of Coca-Cola and United Technologies also provided support.
The Dow Jones Industrial Average closed 177 points higher. The S&P 500 closed 20 points higher. The NASDAQ was up 47 points.
Beef burgers are still by far the most popular burger ordered at quick service restaurants (QSRs). There were 6.4 billion beef burgers ordered at QSRs in the year ending May 2019, according to The NPD Group (NPD). Although growth is flat compared to year ago, beef burgers are still the top sandwich ordered at U.S. restaurants, reports NPD’s CREST®service, which continually tracks how U.S. consumers use restaurants.
With that said, there were 228 million servings of plant-based burgers ordered at QSRs in the year ending May, up 10% from a year ago. NPD analysts say the strong year-over-year growth of plant-based burgers is primarily due to increased availability at major QSR chains.
Beef burger buyers, who purchased beef burgers at QSRs an average of 18 times in the year ending April 2019, did give plant-based burgers a try, purchasing them at QSRs two times in the period. Conversely, 95% of plant-based buyers made a beef burger purchase within the past year, according to NPD’s receipt harvesting serving, Checkout.
Although vegetarians and vegans are contributing to the growth in plant-based, they still represent a small (single digits) percentage of the U.S. population and aren’t the primary contributors.
Instead, the NPD folks say the popularity of plant-based foods is being fueled by consumers’ desire to add protein to their diets, concerns for animal welfare and how meat products are brought to market, sustainability, and what they perceive to be healthier nutrition.