Feeder Cattle futures closed an average of $1.55 lower Thursday beneath the weight of higher Corn futures, which were 14¢ to 16¢ higher through new-crop contracts and then mostly 9¢ to 11¢ higher. Soybean futures closed mostly 27¢ to 31¢ higher — both supported by the hotter, drier weather forecast in the Corn Belt.
Live Cattle futures closed narrowly mixed, from an average of 37¢ lower to an average of 15¢ higher, supported by positive weekly exports but pressured from lower cash prices and weaker wholesale beef values.
Negotiated cash fed cattle trade ranged from limited on light demand to mostly inactive on light demand through Thursday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
So far, this week, live prices are $1 lower in the Southern Plains at $135/cwt., $1.00-$5.50 lower in Nebraska at $138 and steady in the western Corn Belt at $141-$145. Dressed prices are $2 lower in Nebraska at $225 and $3-$7 lower in the western Corn Belt at $224-$225.
Choice Boxed beef cutout value was 22¢ lower Thursday afternoon at $267.77/cwt. Select was $1.00 lower at $240.81/cwt.
Net U.S. beef export sales of 25,300 metric tons were 6% more than the previous week and 66% more than the prior four-week average, according to the U.S. Export Sales report for the week ending July 21. Increases were primarily for South Korea, Japan, China, Taiwan and Mexico.
Major U.S. financial indices closed higher again Thursday, apparently driven by strong quarterly earnings reports from Apple and Amazon.
The Dow Jones Industrial Average closed 332 points higher. The S&P 500 closed 48 points higher. The NASDAQ was up 130 points.
CME WTI Crude Oil futures closed 43¢ to 84¢ lower through the through the front six contracts.
U.S. consumers reduced their restaurant visits in the second quarter of 2022, amid rising inflation and menu prices, according to The NPD Group (NPD).
Physical and online restaurant traffic declined 2% year over year in the second quarter and was 6% below the pre-pandemic level in the second quarter of 2019. Consumer restaurant spending for the quarter, which reflects higher costs in contrast to increased visits, was 2% higher year over year and 3% more than the same quarter in 2019.
“We see three ways consumers respond to higher menu prices. They trade down to lower-priced items, cut back on the number of items ordered, or reduce restaurant visits altogether,” says David Portalatin, NPD Food Industry Advisor. “Operators and manufacturers can win in this environment by differentiating value, understanding that value doesn’t always translate to the lowest price. Quality and value become a critical differentiator when consumers spend on a restaurant meal during these challenging times.”
Visits to quick service restaurants (QSRs), represented 82% of total restaurant traffic in the second quarter. They were 2% less year over year and 3% less than the pre-pandemic level for the same period in 2019. QSR fast casual restaurant traffic was 1% less than a year ago but was 8% more than same quarter in 2019.
Full service restaurant (FSR) visits, represented 18% of restaurant visits in the second quarter. They were 3% less than a year earlier and 20% less than the second quarter of 2019.