Cattle Current Daily—Sept. 16, 2020

Cattle Current Daily—Sept. 16, 2020

Cattle futures closed narrowly mixed Tuesday, awaiting cash direction.

Live Cattle futures closed mixed but mostly marginally lower (an average of 17¢ lower to an average of 25¢ higher).

Feeder Cattle futures closed an average of 72¢ higher (17¢ higher in spot Sep to $1.10 higher).

Choice boxed beef cutout value was $1.12 lower Tuesday afternoon at $216.09/cwt. Select was $1.48 lower at $206.28.

Corn futures closed mostly 3¢ lower. 

Soybean futures closed 4¢ to 8¢ lower through May ’21 and then 2¢ higher to 2¢ lower.

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Major U.S. financial indices edged higher Tuesday, with support from tech stocks and ahead of the FOMC meeting scheduled for Wednesday and Thursday. 

The Dow Jones Industrial Average closed 2 points higher. The S&P 500 closed 17 points higher. The NASDAQ closed 133 points higher.

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“La Niña conditions were present in August, and there’s a 75% chance they’ll hang around through the winter,” according to the latest update from the National Oceanic and Atmospheric Administration (NOAA), which issued a La Niña Advisory in recent days.

While every El Niño Southern Oscillation is different, the NOAA folks say it makes certain outcomes more likely. In this case, La Niña winters tend to be warmer and drier in the Southern tier of the United States and tend to be colder in the Northern tier.

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“Drive-thru and other off-premises operations will be a major part of the U.S. restaurant industry’s recovery and future,” says David Portalatin, food industry advisor for The NPD Group (NPD). “Drive-thru operations are delivering a high ROI during the pandemic, offering convenience, speed, and the comfort of social distance to consumers using them. Fast casual and traditional quick service chains have already announced expansion plans for their drive-thru operations, and we will hear about more chains doing the same.”

Compared to pandemic lows, drive-thru restaurant visits increased by 26% in the April, May, and June quarter and represented 42% of all restaurant visits, according to NPD. Although more restaurants reopened in July, drive-thru visits still increased by 13%.

For perspective, according to NPD, drive-thru visits declined 17% year over year in the second quarter, but they fared significantly more positively than other restaurant categories and segments.

Visits to fast casual chains were down 26% year over year in the second quarter. Prior to the pandemic, and for the last several years, they outpaced the U.S. restaurant industry in visits and unit growth. Many of them don’t have drive-thru operations.

Likewise, most full service restaurants don’t have drive-thrus. They were most impacted by the mandated dine-in closure, with year-over-year declines of 48% in April, May and June, before improving to a year-over-decline of 32% in July.

2020-09-15T19:41:02-05:00

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