LIVESTOCK HIGHLIGHTS: Top Stories of the Day
December 18 2017 - 5:23PM
Dow Jones News
TOP STORIES
Ruby Tuesday Rejects 'Highly Conditional' Bid From Boaz Group
>RT
Ruby Tuesday Inc. (RT) on Monday said its board rejected a new
"highly conditional" takeover bid from Boaz Group LLC, which
offered $2.88 a share for the restaurant chain.
Private-equity firm NRD Capital Management in October agreed to
take Ruby Tuesday private for $146 million, or $2.40 a share, and
the deal is expected to close Thursday.
Chick-fil-A Feeds Stranded Airport Passengers -- Market Talk
11:38 ET - Atlanta-based chicken chain Chick-fil-A donated more
than 5,300 sandwiches to stranded passengers at Hartsfield-Jackson
Atlanta International Airport late last night after receiving a
call from Atlanta's mayor around 10 pm seeking assistance. "We
immediately mobilized operators, staff and team members who live
and work near the airport, and they began hand preparing sandwiches
offsite and personally delivering them," to airport and city
officials who then distributed the free food to passengers, a
Chick-fil-A spokeswoman says. (julie.jargon@wsj.com)
STORIES OF INTEREST
Commodity Prices Set to Rise in 2018, RBC Says -- Market
Talk
1159 ET - Commodity prices could be set for an upturn in 2018,
RBC Capital Markets says. "Recent years have not been particularly
kind" in terms of prices of the commodities in RBC's coverage, the
brokerage notes. "However, as we head into next year, we are at
least cautiously optimistic on prices and we note that geopolitical
disruptions could be a much more consequential catalyst and
possibly a material upside risk to prices." Oil prices will ebb and
flow over the coming months, but RBC says it supports the notion of
a rising price floor. The end of 2017 has had a notably bearish
bias for gold, it adds. "Our baseline expectations for 2018 are for
measured price increases, albeit with risks."
(philip.waller@wsj.com)
Food Acquisitions Show Strategic Shift -- Market Talk
8:58 ET - Hershey's decision to acquire Amplify Snacks, which
makes SkinnyPop popcorn, and Campbell's deal to buy Snyder's-Lance,
which makes Snyder's of Hanover pretzels and KETTLE chips highlight
the big food companies' efforts to move toward healthier snack
brands where sales are growing faster than in categories like candy
and canned soup. From 2012 to 2016, Snyder's-Lance's sales rose at
an average of 11.5% a year, while Campbell's revenue has declined
in recent years. Hershey said SkinnyPop also had double-digit
percentage sales growth in recent years, which makes it attractive
to Hershey. In the past few years, Campbell bought a fresh carrot
business, and Hershey acquired a beef jerky brand, highlighting
their strategy to broaden the types of food they sell.
(annie.gasparro@wsj.com)
FUTURES MARKETS
Cattle Futures Mixed; Supply Pressures Mount
Cattle futures started the week mixed as a cash-market rally
lent some support to prices.
Physical cattle prices rose unexpectedly on Friday, with
meatpackers around the country paying between $118 and $120.50 per
100 pounds on a live basis, above the prior week's level and
defying expectations for a decline. Sales over the course of the
week averaged at $119.66 live and $188.96 dressed.
CASH MARKETS
Zumbrota, Minn Hog $1.00 Lower At $35.00 - Dec 18
Barrow and gilt prices at the Zumbrota, Minn., livestock market today
are $1.00 lower at $35.00 per hundredweight.
Sow prices are steady to $1.00 lower. Sows weighing 400-450 pounds are
at $28.00-$29.00, 450-500 pounds are $28.00-$29.00 and those over 500
pounds are $31.00-$33.00.
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 - Dec 18
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Dec 18 +$36.64 +$ 31.28
Dec 15 +$38.46 +$ 35.02
Dec 14 +$37.56 +$ 33.98
* 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 105.0
(Percent of Year-Ago) Select 103.6
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $1.28 per hundred
pounds, to $203.15, according to the USDA. Select-grade prices rose
$1.76 per hundred pounds, to $185.01. The total load count was 110.
Wholesale pork prices fell $1.74, to $74.95 a hundred pounds, based
on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
December 18, 2017 17:08 ET (22:08 GMT)
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