TOP STORIES 
 

Yum Board Approves Spinoff Plan, Raises Dividend 11%

Yum Brands Inc. said its board approved the planned spinoff of its China unit, which remains on track to close at the end of next month, as the company also raised its dividend by 11%.

The Louisville, Ky., company increased the quarterly dividend to 51 cents a share, an increase of a nickel a share.

Grains, Soybeans Decline On Harvest-Friendly Forecasts

CHICAGO--Grain and soybean futures fell Monday as forecasts for good weather across much of the U.S. Midwest promised to clear the way for farmers to harvest what are expected to be record crops.

Soybean prices dropped, weighed down by a view for drier weather in the U.S. Farm Belt this week, which likely will help growers make progress collecting massive crops. Last week, heavy rains drenched parts of the Midwest including major farm states like Iowa and Minnesota, fueling concerns over yield loss in some farmers' fields. However skies are expected to clear this week, allowing farmers to resume fieldwork and easing worries over damage to crops.

 
   STORIES OF INTEREST 
 

Chances for Bayer-Monsanto Merger are 50/50 -- Market Talk

8:31 ET - Bernstein upgrades Monsanto (MON) to market perform but warns investors to steer clear of the stock, citing uncertainty that Bayer's proposed $128-a-share deal for the agricultural giant will pass regulatory muster. Bernstein says the companies have few overlapping businesses but sentiment against major deals among US regulators and public opinion in Europe pose hurdles to the transaction. The investment banks says on its own MON is worth $80 with weak growth prospects, but with the market putting chances of closing at 50-50, it splits the difference with the deal price to arrive at a price target of $105. MON up 0.4% to $103.98 premarket. (ron.winslow@wsj.com; @ronwinslow)

 
   FUTURES MARKETS 
 

U.S. Cattle Futures Recover From Lows, Slide on Supply Fears

CHICAGO--U.S. cattle futures bounced off session lows to end the trading day Monday narrowly lower, after a federal inventory report showed larger-than-expected supplies of feeder-cattle entered the nation's feedlots last month.

October cattle futures dropped 0.45 cent, or 0.4%, to $1.06825 a pound, after a 0.6% decline last week. December live-cattle futures declined 0.725 cent to $1.06125 a pound. September feeder-cattle futures declined 0.775 cent to $1.3605 a pound, after picking up 1% in the past week.

 
   CASH MARKETS 
 
Zumbrota, Minn Hog Market $2.00 Lower At 33.00 - Sep 26 
 
Barrow and gilt prices at the Zumbrota, Minn., livestock market today are 
$2.00 lower at $33.00 per hundredweight. Sow prices are steady to $3.00 lower. Sows weighing under 450 pounds are $33.00-$34.00, 400-450 pounds are 
at $33.00-$34.00, 450-500 pounds are $33.00-$34.00 and those over 
500 pounds are $35.00-$36.00. 
 
The day's total run is estimated at 100 head. 
 
Prices are provided by the Central Livestock Association. 
 
Estimated U.S. Pork Packer Margin Index - Sep 26 
 
This report reflects U.S. pork packer processing margins. The margin indices 
are calculated using current cash hog or carcass values and wholesale pork 
cutout values and may not reflect actual margins at the plants. These 
estimates reflect the general health of the industry and are not meant to 
be indicative of any particular company or plant. 
Source: USDA, based on Wall Street Journal calculations 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically 
                             integrated operations 
                                      * 
Sep 26       +$52.87             +$ 26.32 
Sep 23       +$48.70             +$ 23.08 
Sep 22       +$51.17             +$ 26.11 
 
* Based on Iowa State University's latest estimated cost of production. 
A positive number indicates a processing margin above the cost of 
production of the animals. 
 
Beef-O-Meter 
This report compares the USDA's latest beef carcass composite 
values as a percentage of their respective year-ago prices. 
 
                                 Beef 
          For Today             Choice   88.1 
      (Percent of Year-Ago)     Select   85.6 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Monday rose 23 cents per hundred pounds, to $187.04, according to the USDA. Select-grade prices rose 84 cents per hundred pounds, to $179.65. The total load count was 163. Wholesale pork prices rose $1.51, to $77.98 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

September 26, 2016 17:43 ET (21:43 GMT)