LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Fresh Food And Protein May Have 'Sustained Demand' -- Market
16:07 ET - If schools and restaurants are closed for at least 30
days, consumers will spend an additional $52B on food they can
prepare and eat at home in 2020, UBS analysts estimate. That would
represent a 5% year-over-year increase in spending for grocery and
food products for the home, bolstering retailers and manufacturers.
Meanwhile, spending on food at restaurants and other facilities
would drop by 7.3% under this scenario. "The longer restaurants
stay closed, we would expect categories such as fresh food and
proteins to experience sustained demand," the UBS analysts say.
McDonald's Halts Drive-Through and Takeaway Services in UK and
McDonald's Corp. is halting drive-through and other takeout
services in the U.K. and Ireland, while closing its restaurants in
the region entirely, due to concerns over social distancing.
The move was unexpected, and highlights the challenge
restaurants face in continuing to offer to-go options amid the
STORIES OF INTEREST
KFC Owner Yum Says Stores in China Have Begun Reopening after
Closures Peaked in February
Yum China Holdings Inc., which operates KFC, Pizza Hut and Taco
Bell in China, said about 95% of its stores have either partially
or fully reopened as reported cases of the novel coronavirus in the
country slow down.
The company, a licensee of Yum! Brands Inc., on Monday said 10%
to 20% of open stores only offer delivery and takeaway service,
while others are operating with reduced hours. Store traffic
remains well below pre-outbreak levels but is recovering slowly,
the company said.
Food Supply Among the Industries Increasing Hiring -- Market
1359 ET - Food supply-chain companies are among the firms
looking for more workers to meet demand during the coronavirus
pandemic. Fred Boehler, chief executive of AmeriCold Logistics,
said his company is looking for more staff to meet demand for
on-time deliveries from grocery stores and supermarkets. There's
also been less turnover of late, because AmeriCold's workforce
senses dimming opportunities elsewhere, he said. "That next better
gig isn't out there right now," Boehler said. "By keeping the same
employee base, we're probably more efficient."
Livestock Futures Close Limit High to Start Week -- Market
15:45 ET - Both live cattle and lean hog futures on the CME
finished the day limit-up, with cattle futures rising 3.4% to
92.525 cents per pound and lean hogs gaining 4.4% to 70.95 cents
per pound. "With grocery store coolers emptying quickly, meat
companies are stepping up production to fill the supply chain for
all types of meat," says RJO Futures. "In the end, we have a
surplus of meat but again, the short-term set-up is temporarily
bullish." (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Mar 23
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 -
Mar 23 +$ 47.58 +$ 45.03
Mar 20 +$ 43.11 +$ 36.97
Mar 19 +$ 40.70 +$ 34.17
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 112.3
(Percent of Year-Ago) Select 112.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $3.57 per hundred
pounds, to $257.32, according to the USDA. Select-grade prices rose
$4.97 per hundred pounds, to $245.14. The total load count was 236.
Wholesale pork prices rose $3.47, to $83.51 a hundred pounds, based
on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
March 23, 2020 17:21 ET (21:21 GMT)
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