There were 1,249 head offered in the weekly Fed Cattle Exchange Auction Wednesday. None were sold, but one lot of steers from Kansas was passed out at $111/cwt., which was $2 less than last week’s price in the Southern Plains. Likewise, there was too little country trade to establish a market.
Cattle futures traded on both sides of even Wednesday, amid light trade and little direction. Other than spot Live Cattle, most contracts in both pits meandered to marginal gains or losses.
Except for unchanged in Feb, Live Cattle futures closed an average of 38¢ higher (15¢ higher to 97¢ higher in spot Aug).
Except for 7¢ higher in spot Aug and 2¢ higher in Jan, Feeder Cattle futures closed an average of 10¢ lower.
Wholesale beef values were steady to weak on light to moderate demand and heavy offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 1¢ lower Wednesday afternoon at $204.64/cwt. Select was 37¢ lower at $197.58.
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Major U.S. financial indices closed higher Wednesday, with extra support coming late in the session on reports that President Trump garnered trade concessions from the EU, including that bloc agreeing to import more U.S. soybeans.
The Dow Jones Industrial average closed 172 points higher. The S&P 500 closed 25 points higher. The NASDAQ was up 91 points.
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U.S. consumers are increasingly eating and preparing their meals at home, contrary to recent news reports that they are eating at restaurants more based on an uptick in foodservice spending, according to The NPD Group (NPD), a leading global information company.
Through its daily research of U.S. consumers’ eating behaviors, NPD shows that four out of five meals are prepared at home, and although the relationship of in-home prepared meals versus those sourced away from home has been stable for a few years, Americans still prepare more meals at home than they did a decade ago. Last year over 80% of meals were prepared and eaten in home.
Although foodservice spending has been increasing—up 2% in the year ending May 2018—foodservice visits were flat in the period compared to year ago. Foodservice spending is up primarily because the cost of a restaurant meal is increasing faster than the cost of a home-prepared meal, according to NPD. Additionally, a restaurant meal has historically cost more than an in-home meal, typically as much as three times more. So, NPD analysts say restaurant visits, whether onsite, drive-thru, or ordered for delivery, are more indicative of foodservice growth than spending, reports NPD.
While U.S. consumers might not be dining out more, they do turn to foodservice for a shortcut in their in-home meal preparation. Close to half of dinners purchased from a restaurant are consumed at home and a growing number of in-home meals are a blend of dishes prepared and items purchased ready-to-eat from a foodservice establishment. NPD’s recently published Future of Dinner study forecasts that blended meals, which include a restaurant or prepared food, will grow over the next five years.