Strong follow-through buying in Cattle futures ran out of steam by the end of the session Wednesday, though markets were able to retain the previous day’s gains and add a bit. Trade tensions and lingering uncertainties about burgeoning beef supplies continue to help limit advances.
Except for 2¢ lower in away Aug, Live Cattle futures closed an average of 32¢ higher ($1.10 higher in spot Jun).
Feeder Cattle futures closed an average of 77¢ higher (from 62¢ to $1.47 higher).
Support came from growing notions that cash fed cattle can trade higher this week.
For instance, slaughter steers sold mostly $2 higher at Sioux Falls Regional in South Dakota; $111-$115/cwt. for Ch 2-3.
There were only 568 head offered in Wednesday’s weekly Fed Cattle Exchange auction, for delivery at 1-9 days. There were no takers; two lots (155 steers and 51 heifers) were passed on at $110/cwt.
Boxed beef cutout values were weak to lower Wednesday on light demand and light to moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was 61¢ lower in the afternoon at $226.97/cwt. Select was $2.20 lower at $203.65.
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Major U.S. financial indices closed sharply higher Wednesday, driven by rallying bank stocks, tied to higher interest rates.
The Dow Jones Industrial Average closed 346 points higher. The S&P 500 closed 23 points higher. The NASDAQ was up 51 points, closing at a record high.
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“It’s clear by the growth in plant-based protein case shipments to foodservice and restaurant operators that this category has mainstreamed beyond those who choose a meatless diet,” says David Portalatin, industry advisor for The NPD Group’s (NPD) Food Sector. Case shipments from broadline foodservice distributors to independent and micro-chain restaurant operators were 19% higher for the year ending in March.
In a recent NPD survey, 14% of U.S. consumers (more than 43 million consumers) regularly use plant-based alternatives such as almond milk, tofu, and veggie burgers, and 86% of them don’t consider themselves vegan or vegetarian. The heaviest users of plant-based foods are those who are more likely to be on a diet or to have a medical condition, and consumers who tend to think of food as fuel, are more convenience-oriented than others and less confident in their cooking skills.
Beef alternatives are driving growth in the category. Specifically, according to NPD, beef alternatives make up 44% of the plant-based categories being shipped to independent and micro-chain restaurant operators. Burgers are the largest beef alternative category but ball products, like meatless meatballs, used as ingredients have outpaced burgers and all other plant-based protein formats in terms of growth.