October CPI Steady After September Rise

The Consumer Price Index from the US Bureau of Labor Statistics last week showed Consumer Prices for All Urban Consumers were unchanged in October on a seasonally adjusted basis after rising 0.2% in September.

Over the last 12 months, the all-items index increased 1.2% before seasonal adjustments.

A market analyst said that with the money supply still growing, this CPI report may be good for beef and cattle producers in that consumers may be able to afford rising prices for beef.

 

COMPONENT INEXES MIXED

 

Components of the overall index were mixed, with many offsetting increases and decreases, the BLS said.  The food index rose 0.2%, with the food-away-from-home index increasing by 0.3% and a smaller 0.1% rise in the food-at-home index.

The energy index rose 0.1% in October as the index for electricity increased 1.2%, the CPI report said.

The index for all items less food and energy was unchanged following an increase of 0.2% in September, the BLS said.  The index for shelter increased 0.1%, which was offset by a 0.4% decrease in the index for medical care.

The indexes for airline fares, recreation and new vehicles were among those to rise, while the indexes for motor vehicle insurance, apparel and household furnishings and operations declined, the CPI report said.

The all-items index rose 1.2% for the 12 months ending October, a slightly smaller increase than the 1.4% rise for the 12-month period ending September, the BLS said.

The index for all items less food and energy rose 1.6% over the last 12 months after rising 1.7% in September, the report said.  The food index increased 3.9% over the period, while the energy index declined 9.2%.

 

FOOD INDEX UP

 

The food index rose 0.2% in October after being unchanged in September, the BLS said.  The food-at-home index increased 0.1% as four of the six major grocery store food group indexes rose.

The index for meat, poultry, fish and eggs increased 0.4% following a 0.4% decrease in September, the report said.  The indexes for other food at home and for cereals and bakery products rose 0.3%, while the index for fruits and vegetables increased 0.1%.

The food-away-from-home index continued to rise, increasing 0.3% in October, a smaller increase than the 0.6% rise in September, the report said.  The indexes for limited service meals and full-service meals rose 0.3%.

The food-at-home index increased 4.0% over the last 12 months, the BLS said.  All six major grocery store food group indexes rose over the span, with increases ranging from 2.6% (fruits and vegetables) to 6.1% (meats, poultry, fish and eggs).

The food-away-from-home index rose 3.9% over the year, the largest 12-month increase since May 2009, the report said.

 

CATTLE, BEEF RECAP

 

Fed cattle trading last week was at $110 per cwt on a live basis in the Plains, up $2.75 to $4 from the previous week.  Dressed-basis trading was done at $172, up $5 to $12.

The USDA choice cutout Friday was down $0.52 per cwt at $225.98, while select was up $1.22 at $209.46.  The choice/select spread narrowed to $16.52 from $18.26 with 134 loads of fabricated product and 36 loads of trimmings and grinds sold into the spot market.

The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.10 to $1.15 per bushel over the Dec CBOT futures contract, which settled at $4.10 1/2 a bushel, up $0.02 1/4.

The CME Feeder Cattle Index for the seven days ended
Thursday was $137.35 per cwt, up $0.65.  This compares with Friday’s Nov contract settlement of $137.47 per cwt, down $2.60.