Cattle futures weakened Wednesday with likely spillover pessimism from lower outside markets, the lack of cash direction and perhaps some defensiveness in the face of Friday’s Cattle on Feed report.
Feeder Cattle futures closed an average of 74¢ lower, except for 57¢ higher in the back contract.
Live Cattle futures closed an average of 25¢ lower, except for 17¢ higher in the back contract.
Negotiated cash fed cattle trade ranged from limited on light demand to a standstill through Wednesday afternoon, according to the Agricultural Marketing Service. There were a few trades at $145/cwt. in Nebraska and the western Corn Belt but too few to trend.
Live prices last week were $142/cwt. in the Southern Plains, $143 in Nebraska and $143-$145 in the western Corn Belt. Dressed prices were $226-$227 in Nebraska and $226 in the western Corn Belt.
Choice Boxed beef cutout value was $2.51 lower Wednesday afternoon at $249.13/cwt. Select was $1.09 lower at $226.14/cwt.
Corn futures closed 3¢ to 6¢ lower Wednesday with pressure from lower outside markets and the export-adverse rise in the U.S. dollar.
Soybean futures closed 13¢ to 17¢ lower through Aug ‘23 and then mostly 8¢ to 9¢ lower.
Major U.S. financial indices closed sharply lower Wednesday after a volatile trading session as investors first awaited the Fed’s latest interest rate decision and then parsed through the announcement.
As widely expected, the Federal Operating Markets Committee (FOMC) increased interest rates by 75 basis points and anticipated further tightening to rein back inflation.
“Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” according to the FOMC statement. “Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.”
The Dow Jones Industrial Average closed 522 points lower. The S&P 500 closed 66 points lower. The NASDAQ was down 204 points.
CME WTI Crude Oil futures closed 63¢ to $1.00 lower through the front six contracts.
Nearly three in four beef-eating Americans can’t imagine giving up the taste of beef, according to new research from Midan Marketing, a full-service agency dedicated to meat industry clients.
“Recent data from Mintel shows that 81% of American consumers eat beef,” says Bridget Wasser, associate director of customer insights at Midan. “We know that consumers are seeking out several attributes when shopping for beef, so we set out to determine which claims are most impactful.”
According to Midan’s newest proprietary research, 68% of consumers purchase beef with production claims at least some of the time.
The survey, which was fielded in April 2022, presented a nationally representative sample of U.S. beef consumers with 28 different product attributes. Claims tested ranged from quality claims including USDA Prime or Choice grade, production claims like grass-fed or carbon neutral, and sourcing claims such as locally raised or product of the U.S.
Claims that carry the most weight with consumers vary generationally. For instance, most shoppers search first for beef carrying a USDA Choice grade. When it comes to the second attribute they look for: Baby Boomers — Raised in the USA; Gen X — USDA Prime; Millennials — Raised with no added hormones or growth promotants.
As for Gen Z — they ranked No added hormones or growth promotants as their leading attribute, followed by High in protein. USDA Choice ranked fourth on the list for them.