Negotiated cash fed cattle trade continued on Wednesday with prices mainly steady to higher, compared to last week. Live prices in the Texas Panhandle were steady to $2 higher at $95/cwt.; steady to $1 lower in Kansas at $94-$95. For the week, live sales are steady in Nebraska at $95-$96 and $3-$5 higher in the beef at $157-$160. In the western Corn Belt, live sales are $3 higher than last week at $99-$100 and $5-$7 higher in the beef at $160.
Cattle feeders offered 1,390 head in the weekly Fed Cattle Exchange auction. Of those, 659 head sold, all from Kansas: 509 head for delivery at 1-9 days for a weighted average price of $95.16; 150 head for delivery at 1-17 days for a weighted average price of $95.
Live Cattle futures closed an average of 41¢ lower.
Feeder Cattle futures closed an average of 69¢ lower.
The monthly five-area direct average steer price in June was $103.82/cwt. on a live basis (FOB), which was $7.71 less than the previous month and $8.10 less than the prior year, according to USDA’s monthly report. The average live weight was 1,441 lbs., which was 21 lbs. lighter month to month, but 61 lbs. heavier year over year. The average dressed steer price (delivered) was $165.69 in June, which was $13.33 less than in May and $16.01 less than the previous year. The average dressed steer weight in June of 926 lbs. was 9 lbs. lighter than the previous month, but 43 lbs. heavier than the same time a year earlier. For January through June, total five-area direct confirmed sales of 1.91 million head were 9.75% less than the same period a year earlier.
Choice boxed beef cutout value was $1.47 lower Wednesday afternoon at $203.83/cwt. Select was $1.32 lower at $195.52.
Corn futures closed mostly 1¢ to 2¢ higher.
Soybean futures closed 1¢ to 5¢ lower through May ’21 and then mostly 1¢ higher.
The Wall Street seesaw continued Wednesday, to the upside this time, with tech stocks leading Major U.S. financial indices higher.
The Dow Jones Industrial Average closed 177 points higher. The S&P 500 closed 24 points higher. The NASDAQ closed 148 points higher.
Recovery of U.S. restaurant customer transactions stalled for the second week in a row as COVID-19 cases continue to increase in a number of states, according to The NPD Group (NPD).
For the week ending June 28, total customer transactions at major U.S. restaurant chains were down 14% versus the same week a year ago. That’s a 1% decline from the previous week, based on NPD’s CREST® Performance Alerts, which provides a rapid weekly view of chain-specific transactions and share trends for 72 quick service, fast casual, midscale, and casual dining chains.
The rise in COVID-19 case counts is causing local and state authorities to delay reopening, and in some cases, reinstating on-premise restaurant dining restrictions. In Texas, for example, restaurants may continue to offer on-premise dining, but capacity was rolled back from 75% to 50%. California announced last week the closing of its nearly 86,000 restaurants to on-premise dining.
Nationwide, full service restaurant customer transactions were 25% less than a year earlier, for the week ending June 28. That was a 1% weekly decline overall, while transactions fell 6-9% in states where coronavirus is increasing.
Customer transactions at major quick service restaurant chains declined by 13% compared to the same week last year, down 1 point from the previous week’s decline.
“It’s apparent that the road to recovery is going to be a challenging one for the U.S. restaurant industry,” says David Portalatin, NPD food industry advisor. “Consumer demand is there, as is the want for normalcy, but there is nothing normal about this situation.”