Cattle futures sagged Monday beneath the weight of continued sharply lower outside markets as traders try to navigate everything from slowing economic growth, to increasing COVID cases in China and Russia’s war with Ukraine.
Feeder Cattle futures closed an average of $2.04 lower ($1.42 to $3.15 lower).
Live Cattle futures closed an average of $1.97 lower ($1.52 to $2.32 lower).
Corn futures closed mostly fractionally mixed to 1¢ higher.
Soybean futures closed 27¢ to 38¢ lower through Jly ‘23 and then mostly 19¢ to 21¢ lower.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand to a standstill through Monday afternoon, with too few transactions to trend, according to the Agricultural Marketing Service.
Live prices last week were $136 in the Texas Panhandle, $137 in Kansas, $141 in Colorado, and $141-$143 in Nebraska and the western Corn Belt. Dressed prices were $225-$226.
Choice Boxed beef cutout value was 78¢ lower through Monday afternoon at $270.54/cwt. Select was $1.44 lower at $247.45.
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Jittery investors continued the sell-off on Wall Street Monday, pushing major U.S. financial indices sharply lower, amid worries about inflation, recession, stagflation and all of the rest.
The Dow Jones Industrial Average closed another 876 points lower. The S&P 500 closed 151 points lower. The NASDAQ was down 530 points.
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The recent and sudden decline in chicken breast prices could hint at protein demand challenges as consumers grapple with fading discretionary income, according to analysts with the Livestock Marketing Information Center (LMIC), in the latest Livestock Monitor.
“The last two weeks have been the only week-over-week declines in boneless skinless chicken breasts in six months,” say LMIC analysts. “Legs and drumsticks also dropped significantly this week down 4% a piece.”
Even so, LMIC analysts explain boneless skinless chicken breast value is 65% higher year over year. Legs are up 46% higher. Wing prices are about 40% less, though.
“Consumer sentiment came out this week and showed the lowest value on record back to 1978 at 50.2. The number is shocking, given it’s lower than during the Great Recession, but also speaks to the volume of stress consumers may be facing,” say LMIC analysts. “How this will impact meat case purchases is uncertain, but to see chicken prices have a strong two weeks of pullback after so many weeks of gains might be an indication that consumers have reached their limit even for one of the least expensive animal proteins.”