In country trade on Wednesday, negotiated cash fed cattle sales were $8-$10 lower than last week on a live basis at $121-$123/cwt. Dressed trade was $4-$17 lower in Nebraska at $196-$198.
Those live sales mirrored the weekly Fed Cattle Exchange Auction earlier in the day, where the weighted average price was $123 for delivery at 1-9 days. Of the 2,147 head offered, only two lots sold, comprising 457 head—all steers, some from Texas and some from South Dakota.
Feeder Cattle futures eked out minimal gains on Wednesday, while Live Cattle turned lower after support early in the session.
Other than 2¢ higher in back Jun, Live Cattle futures closed an average of 46¢ lower (15¢ to 85¢ lower).
Feeder Cattle futures closed an average of 68¢ higher (47¢ to $1.15 higher).
Choice boxed beef cutout value was $1.57 lower Wednesday afternoon at $245.42/cwt. Select was 98¢ lower at $218.90.
Other than tech stocks, Major U.S. financial indices closed lower on Wednesday, pressured once again by softer crude oil and energy prices.
The Dow Jones Industrial Average closed 57 points lower. The S&P 500 closed 1 point lower. The NASDAQ closed 45 points higher.
There seems little doubt that Amazon will capture some of the current conventional grocery market with their acquisition of Whole Foods. On the other hand, it seems just as likely that plenty of food shoppers will opt for the tried and true physical store.
Consumers who tried grocery shopping online but didn’t go back (referred to as lapsed consumers), as well as those who have never shopped for groceries online point out a number of barriers to their adoption of online grocery shopping, the top reason being that they want to pick out their own fresh items. That’s according to the NPD Group (NPD), a leading global information company.
“Brick-and-mortar stores aren’t dead, they will just need to step up their game. There will continue to be a large percentage of the population who will prefer to shop at brick-and-mortar grocers,” says Darren Seifer, NPD food and beverage industry analyst. “Brick-and- mortar food retailers should market the unique consumer needs they meet that online grocers aren’t currently offering, experience being a key one. At the same time, they need to keep up with the times and leverage digital ordering via their own click-and-collect programs as well as partnering with third parties for delivery in order to expand their offerings.”
At the same time, the folks at NPD say there’s plenty of growth potential for grocery e-commerce, with only 7% of U.S. consumers saying they shopped online for groceries in the last month.
NPD predicts that online grocery shopping will grow at a faster rate than the early online pioneers since consumers have already experienced the convenience of online shopping. In fact, 20 million consumers who are current, lapsed, or new to online grocery shopping plan to increase their virtual shopping for foods and beverages over the next six months, according to the NPD study, The Virtual Grocery Store.