Negotiated cash fed cattle trade and demand were moderate in the Texas Panhandle through Wednesday afternoon with prices steady at $140/cwt. Trade in Nebraska was moderate on moderate to good demand, also at steady prices of $146 on a live basis and $232 in the beef.
Elsewhere, trade was slow on light to moderate demand, with too few transactions to trend. However, there were some early live sales at $140 in Kansas and at $145-$146 in the North.
Last week, live prices were $140 in Kansas, $146-$147 in Colorado and $145-$147 in the western Corn Belt, where dressed prices were $232.
The weighted average five-area direct fed steer price in April was $141.66/cwt., which was $20.78 higher than a year earlier (+17%). The average steer price in the beef was $36.55 higher (+16%) at $228.86.
Choice Boxed beef cutout value was 19¢ higher Wednesday afternoon at $259.74/cwt. Select was 34¢ higher at $247.68.
Cattle futures held their ground in the face of firmer Corn futures.
Live Cattle futures closed narrowly mixed, from an average of 26¢ lower to an average of 13¢ higher.
Feeder Cattle futures closed an average of 42¢ higher except for an average of 28¢ lower in three contracts, amid light trade.
Corn futures closed mainly fractionally higher to 1¢ higher. Soybean futures closed 6¢ 10¢ higher.
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Major U.S. financial indices closed sharply higher Wednesday, apparently fueled by optimism the Fed can slow inflation while maintaining economic growth, based on comments from Federal Reserve Chair, Jerome Powell, suggesting incremental rate increases will be no more than 50 basis points each time. On Wednesday, the Federal Reserve raised the lending rate 0.5%, as widely expected.
The Dow Jones Industrial Average closed 932 points higher. The S&P 500 closed 124 points higher. The NASDAQ was up 401 points.
Crude oil futures stepped higher with announced plans from the European Union (EU) for a phased ban of crude oil imports from Russia to the EU over the next six months, as well as an embargo on imports of Russian refined oil products in about the same length of time.
West Texas Intermediate Crude Oil Futures closed $4.54 to $5.40 higher through the front six contracts.
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Higher food and energy costs weighed on restaurant industry recovery in the first quarter, according to The NPD Group (NPD).
Online and physical visits to restaurants declined 2% year over year in the first quarter, compared to a 3% increase last year when stimulus payments and relaxed pandemic restrictions provided a boost. Consumer restaurant spending, which reflects higher costs, as opposed to increased visits, was up 4% in the quarter.
Online and physical visits to quick service restaurants (QSRs) declined by 2% in the first quarter compared to a 6% increase the previous year. Consumer spending at QSRs was 2% more year over year.
Conversely, full service restaurant (FSR) traffic increased by 2% in the first quarter, compared to last year’s 7% decline. FSR spending was up 10% versus the same quarter a year ago when spending fell by 6%.
“With the first quarter behind us, I’m optimistic that seasonal demand and the improving on-premises trends can help get the restaurant industry’s recovery back on track,” says David Portalatin, NPD food industry advisor.