CAG ConAgra Brands Inc

By Jesse Newman 
   TOP STORIES: 
U.S. Grains, Soybeans Fall Amid Ample Supplies, Slow Demand 

CHICAGO--U.S. grain and soybean futures declined in quiet trading on Tuesday, buffeted by ample world inventories and weak demand for U.S. supplies. Wheat prices slid to a low of more than two weeks, pulled down by record world stockpiles of the grain and slow demand for U.S. supplies. The robust U.S. dollar has helped damp overseas demand for U.S. wheat in 2015, making it more expensive than grain offered by rival exporters in Europe and the Black Sea region. Though the dollar dipped on Tuesday, analysts said the wheat market still was plagued by huge global inventories and stiff competition on the world market.

ConAgra Profit Tops Expectations 

ConAgra Foods Inc. on Tuesday reported a dip in sales, though cost cuts and the planned sale of its private-label business helped drive adjusted profit above Wall Street expectations. The Omaha-based food maker, known for brands like Pam cooking spray and Chef Boyardee canned pastas, has been reshaping its business this year as its battles weak demand for many traditional U.S. packaged foods. In November, ConAgra agreed to sell its struggling private-label business for $2.7 billion to TreeHouse Foods Inc. Weeks later, it said it would spin off a line of frozen-potato products, which will rid ConAgra of most of its food-service business and enable it to focus on its grocery-store brands.

 
   STORIES OF INTEREST: 
 
Chipotle Faces New Outbreak 

The Centers for Disease Control and Prevention said it was investigating another outbreak of E. coli last month linked to Chipotle Mexican Grill Inc. involving three states not included in an outbreak that sickened people starting in October. The newly reported cases involve bacteria with a different genetic fingerprint than what was found in the previous outbreak, the agency said on Monday, A total of five people in Kansas, North Dakota and Oklahoma became ill between Nov. 18 and 26, all of whom reported having eaten at a Chipotle in the week before they got sick. The new cases come less than a week after Chipotle Founder and Co-Chief Executive Steve Ells published an open letter to customers in about 60 newspapers across the U.S. in which he apologized for outbreaks that have sickened people.

Nestlé to Shift to Cage-Free Eggs in U.S. by 2020 

Nestlé SA pledged on Tuesday to purchase only cage-free eggs for its U.S. food products by 2020, making it the largest packaged-food company to commit to such a switch and advancing a broader industry push toward more-humane animal-welfare policies. Nestlé, the world's largest food maker by sales, unveiled a more-aggressive timeline than several rivals that recently said they would move to cage-free eggs, including General Mills Inc. Nestlé said it uses 20 million pounds of eggs each year to make products such as Dreyer's ice cream, Buitoni pasta and Lean Cuisine breakfast items. The move comes as packaged-food makers and restaurant chains face increasing pressure from animal-rights activists and consumer groups to improve treatment of animals that supply meat, eggs and other foods.

 
   THE MARKETS: 
 
U.S. Cattle Futures Rise on Early 2016 Supply-Decrease Bets; Hogs Mixed 

CHICAGO--U.S cattle futures climbed on Tuesday as investors began betting that a seasonal decrease in beef production will bolster prices early next year. U.S. lean-hogs futures were mixed. Cattle futures were mostly lower early in the session following a big increase the previous day. But then prices reversed as traders began considering supply and demand dynamics in early 2016. Cattle production typically slows early in every year, which, following a steep decline in cattle prices this fall, would tend to support cattle prices. Hog production could be a factor. Pork production recently hit a record high, and ample supplies of the competing meat could weigh on any increase in beef and, consequently, cattle prices, said Rich Nelson, chief strategist with Allendale Inc. in McHenry, Ill.

Write to Jesse Newman at jesse.newman@wsj.com

(END) Dow Jones Newswires

December 22, 2015 16:26 ET (21:26 GMT)

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