LIVESTOCK HIGHLIGHTS: Top Stories of the Day
May 20 2019 - 5:55PM
Dow Jones News
TOP STORIES
Little Caesars Links Up With Impossible 'Sausage' -- Market
Talk
1000 GMT - Little Caesars Pizza is the latest fast-food chain to
link up with Impossible Foods for a plant-based product launch. The
world's third-biggest pizza chain is testing sausage made from
plants, onions and other vegetables in Florida, New Mexico and
Washington markets. Impossible Foods and rival Beyond Meat are
increasingly moving into major fast-food chains, such as Burger
King, after launching in higher-end retailers.
(heather.haddon@wsj.com, @heatherhaddon)
Carr's Group Feels Heat From Mild Winter: Shore Capital --
Market Talk
1356 GMT - U.K. agriculture and engineering company Carr's Group
is feeling the heat from a mild winter, Shore Capital says as it
cuts the stock to hold from buy. Beneficial weather conditions for
farmers have increased the availability and quality of grassland,
hitting demand for animal-health products and supplements, Shore
says. Furthermore, uncertainty around Brexit has led to a decline
in farmers' confidence, which could weigh on the company's
machinery sales, Shore says. The investment group says it is
prudent to downgrade to hold despite a nondemanding valuation.
Shares fall 1.3% to 148 pence.
(adria.calatayudvaello@dowjones.com)
STORIES OF INTEREST
Trade, Part Dos: Retaliatory tariffs on U.S. agricultural
products are no longer in place thanks to Friday's deal to lift the
levies on steel and aluminum imports from Mexico and Canada.
"Starting Monday, our great farmers can begin doing business again
with Mexico and Canada," said a post on President Trump's Twitter
account. "They have both taken the tariff penalties off of your
great agricultural product. Please be sure that you are treated
fairly."
Meat Prices are Set to Climb as Swine Fever Claims China's Hogs
(May 19)
A disease sweeping China's hog farms is set to hit U.S. meat
eaters' pocketbooks.
The companies that sell Big Mac and Whopper burgers, Jimmy Dean
sausages and Dunkin' bacon sandwiches all expect meat prices to
rise this year, as China imports more pork, beef and poultry to
fill a shortfall in its huge hog market.
African swine fever, harmless to humans but deadly to pigs, has
decimated Chinese hog counts, constraining supplies in the world's
top market for pork. Up to 200 million Chinese hogs will be lost as
the disease spreads and herds are culled to prevent it from
spreading further, U.S. meat-industry officials estimate. Some
expect the number to rise further.
Jack in the Box Gets Thumbs Up From Stifel -- Market Talk
0724 ET - Jack in the Box's plan to remain a standalone company
and steer spending to drive-thrus prompts Stifel to upgrade the
stock to buy from hold and raise its price target to $95 from $85.
Stifel says the stock has suffered from uncertainty about the
company's lengthy strategic review and worries about reduced
guidance. But the analysts say recent promotional changes should
deliver sustainable gains in same-restaurant sales, and they note
the new capital plan focuses on higher-returning investments.
Stifel says it expect Jack in the Box's valuation will improve as
investors gain confidence the chain's outlook. Jack in the Box rose
4.2% Friday to close at $82.17. (colin.kellaher@wsj.com)
FUTURES MARKETS
Hog Futures Slip to Close Day, Cattle Up Slightly -- Market
Talk
17:20 ET - Lean hog futures on the CME closed Monday's session
down 0.7% at 91.750 cents per pound, with demand indicators
continuing to be soft. Meanwhile, live cattle futures closed up
0.1% at $1.11350 per pound. Livestock had a quiet session in
Chicago, characterized as "taking a breather" by Jeff French of Top
Third Ag Marketing. "The cattle futures had inside trading days
where all of the day's price range is between the previous days'
range," says French. (kirk.maltais@wsj.com, @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - May 20
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
May 20 +$ 1.85 +$ 53.16
May 17 -$ 3.01 +$ 50.54
May 16 -$ 3.85 +$ 53.23
* 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 95.4
(Percent of Year-Ago) Select 99.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $1.14 per hundred
pounds, to $221.45, according to the USDA. Select-grade prices fell
25 cents per hundred pounds, to $208.03. The total load count was
110. Wholesale pork prices rose $1.22, to $85.13 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 20, 2019 17:40 ET (21:40 GMT)
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