Cattle futures closed lower for the second consecutive day on Friday as Corn futures gained and cash fed cattle prices remained steady to cloudy.
Feeder Cattle futures closed an average of 1.72¢ lower. However, they were $3.66 higher week to week.
Live Cattle futures closed an average of 76¢ lower.
Corn futures closed 4¢ to 6¢ higher.
KC HRW Wheat closed mostly 18¢ to 20¢ higher.
Soybean futures closed mostly 1¢ to 4¢ lower through Sep ‘24 and then mostly 3¢ higher.
Negotiated cash fed cattle trade was slow on moderate demand in Kansas, Nebraska and the western Corn Belt through Friday afternoon, according to the Agricultural Marketing Service. Elsewhere, trade was very limited on light demand.
For the week, live prices were mostly steady at $165/cwt., except for steady to $1 higher in the western Corn Belt at $165-$166. Dressed prices were steady to $3.50 higher in Nebraska at $265.00-$268.50 and steady in the western Corn Belt at $265.
Choice boxed beef cutout value was 31¢ higher Friday afternoon at $284.91/cwt. Select was $4.51 lower at $271.54/cwt.
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Major national financial indices closed lower Friday, pressured by news that Silicon Valley Bank (SVB), in Santa Clara, Calif. was shuttered by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
Apparently, as a tech-focused lender, SVB ran into a massive cash crunch between clients, such as venture groups, making more withdrawals than anticipated, while increasing interest rates devalued the bank’s bond assets. Silicon Valley Bank had 17 branches in California and Massachusetts.
According to the FDIC, this was the first closure of an FDIC-insured institution since October of 2020.
The Dow Jones Industrial Average closed 345 points lower. The S&P 500 closed 56 points lower. The NASDAQ was down 199 points.
West Texas Intermediate Crude Oil futures (CME) closed 88¢ to 96¢ higher through the front six contracts.
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The U.S. restaurant industry continues to recover from the impact of Covid restrictions and pandemic-related closures, according to The NPD Group (NPD). Although still less than pre-pandemic counts, the number of restaurants in the U.S. grew by 18,000 locations, according to NPD’s fall 2022 restaurant census, which includes restaurants open as of September 30, 2022. Total foodservice traffic, restaurants and retail foodservice combined, was up 2%, and restaurant visits were up 3% in January over visit losses due to the omicron variant last year. Foodservice consumer spending rose 7% in the month compared to a year ago.
In January, dine-in visits at restaurants were up 24% over a gain of 41% in January 2022. Even with the increases, dine-in or on-premises traffic is still recovering from the steep pandemic-related declines in 2020.
Off-premises — primarily drive-thru and delivery — was a default beneficiary of pandemic restrictions, and visits for both order modes remain up, 9% and 88%, respectively, versus three years ago. Traffic at morning meal, including breakfast and A.M. snack periods, has fully recovered from pandemic declines. Restaurant visits at breakfast and A.M. snack increased 13% in January compared to a year ago, and are up 3% versus three years ago, according to NPD.
“Although the pandemic is still informing the foodservice industry narrative, there are areas of meaningful growth and recovery,” says David Portalatin, NPD food industry advisor. “Consumers still need and want foodservice experiences and convenience, and we see the light at the end of this long tunnel peek through.”