Feeder Cattle futures tumbled lower Thursday, pressured once again by surging Corn futures, tied to strong weekly U.S. export sales.
Feeder Cattle futures closed an average of $3.17 lower.
Corn futures closed 15¢ to 22¢ higher through Jly ‘23, and then mostly 6¢ to 9¢ higher.
Soybean futures closed mostly 15¢ to 22¢ higher.
Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Thursday afternoon with too few transactions to trend, according to the Agricultural Marketing Service.
So far this week, live prices are $2 lower in the Southern Plains and Nebraska at $138/cwt. and $2-$4 lower in the western Corn Belt at $138-$140. Dressed prices are $4-$5 lower in Nebraska at $224-$225; $3-$5 lower in the western Corn Belt at the same money.
Lower cash prices pressured Live Cattle futures an average of 70¢ lower, from 2¢ lower in the back contract to $1.67 lower in spot Apr.
Choice Boxed beef cutout value was $1.24 higher Thursday afternoon at $253.94/cwt. Select was $2.58 higher at $247.37.
On another positive note, net U.S. beef export sales for the week ending March 3 of 27,500 metric tons were a marketing year high, up 16% from the previous week and 36% higher than the prior four-week average, according to USDA data. Increases were primarily for China, Japan, South Korea, Canada and Taiwan.
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Major U.S. financial indices closed lower Thursday, with continued volatility and uncertainty stemming from Russia’s war on Ukraine. Inflation was a touch higher than expected, too. Through February, the Consumer Price Index (all items) increased 7.9% over the last 12 months, according to the U.S. Bureau of Labor Statistics. That’s the steepest increase for the date since 1982.
The Dow Jones Industrial Average closed 112 points lower. The S&P 500 closed 18 points lower. The NASDAQ was down 125 points.
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The U.S. restaurant industry’s recovery stalled in January after 10 consecutive months of traffic gains over steep pandemic-related declines, according The NPD Group (NPD).
Physical and online visits to U.S. restaurants were down 2% in January compared to an 8% decline at the same time last year. Consumer spending at restaurants was 4% higher, though, reflecting higher food and operational costs. Total restaurant traffic, online and physical, is down 10% from the pre-pandemic level in January 2020, according to NPD’s continual tracking of the U.S. foodservice industry.
Online and physical visits to quick service restaurants represent the bulk of industry traffic and historically have led the industry out of challenging times. However, they were 3% less year over year in January and 7% less than January 2020. Full service restaurant traffic increased 2% year over year but was 21% less than two years ago, before the pandemic.
Dine-in traffic increased by 40% in January, compared to a year earlier but were 46% less than the pre-pandemic level in January 2020.
“No one ever said the road to recovery would be smooth and steady. Right now, we’re experiencing a dip in the road due to the omicron variant and stimulus money expiring,” says David Portalatin, NPD Food Industry Advisor. “Looking ahead, we should expect volatility. February restaurant numbers will be compared to a rough February last year because of extreme weather. My advice is don’t get too discouraged by January or too elated if February seems great. Just stay the course because we’re on a steady path of gradual improvement.”