Cattle futures extended the previous day’s rally, apparently helped along by technical support and perhaps emboldened by corn planting progress and recent rains across the country.
Feeder Cattle futures closed an average of $2.70 higher.
Live Cattle futures closed an average of $1.74 higher, from 83¢ in spot June to $2.15 in Dec.
Choice Boxed beef cutout value was 77¢ lower Thursday afternoon at $266.65/cwt. Select was 72¢ higher at $249.63.
Negotiated cash fed cattle trade was limited on light demand in all major cattle feeding regions through Thursday afternoon, with too few transactions to trend accord to the agricultural Marketing Service.
For the week, live prices are $2 lower in the Southern Plains at $135/cwt., $1 lower in Nebraska at $139 and steady to $2 lower in the western Corn Belt at $140. Dressed prices are $1-$2 lower in Nebraska at $222 and steady to $5 lower in the western Corn Belt at $222.
Corn futures closed mostly 1¢ to 3¢ higher.
Soybean futures closed 21¢ to 39¢ higher through Jly ‘23 and then mostly 10¢ to 18¢ higher.
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Major U.S. financial indices saw gains on Thursday after two days of losses. Market reports were mixed for the day, but investors seem to expect Friday’s payroll report to show some softening in the labor market. If they are right, that might have a dampening effect, to a degree, on inflation.
The Dow Jones Industrial Average closed 435 points higher. The S&P 500 closed 76 points higher. The NASDAQ was up 322 points.
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Food inflation and rising costs contributed to a year-over-year 4% decline in consumer visits to U.S. restaurants in April, according to The NPD Group. Restaurant traffic in April was 11% below the pre-pandemic level in April 2019. The 1% increase in consumer spending at restaurants in April versus a year ago was more a reflection of higher prices than increased use of restaurants, according to NPD’s daily tracking of the U.S. foodservice industry. Those analysts note the price of a foodservice meal was 9% higher than April of 2019.
“For many consumers, it’s more affordable to eat at home,” says David Portalatin, NPD food industry advisor. “This is when operators need to demonstrate their value to consumers struggling with inflation and be solutions-oriented to help consumers meet needs across life stages.”
Rising restaurant prices have had the most impact on lower-income households and households with kids, according to NPD. For consumers in households with annual incomes of less than $50,000, restaurant visits declined by 11% in April 2022 compared to the same month a year ago. Traffic from households with kids younger than 6 was down 8%; traffic decreased by 9% for households with kids ages 6 to 12.