LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Meat Production Outlook Rises as Slaughtering Reopens -- Market
13:22 ET - Projected US production of red meat and poultry rises
from June as heavier-than-usual animals return to slaughtering
plants, which are reopening after long coronavirus shutdowns, the
USDA says. The outlook for pork production also rises "largely on
higher (than) expected 2H commercial hog slaughter," and the
outlook is raised for next year as well. Live cattle prices rise
0.9% and hogs decline 1.1%. (firstname.lastname@example.org;
Trump Dims Hopes for New China Trade Deal
President Trump damped expectations for a promised phase-two
trade pact with China on Friday, saying the relationship between
the countries has been too badly damaged by the coronavirus
"I don't think about it now," Mr. Trump told reporters aboard
Air Force One, where he criticized China's response to the new
coronavirus, which continues to spread rapidly throughout the U.S.
"They could have stopped the plague, they could have stopped it,
they didn't stop it."
STORIES OF INTEREST
Sell Beyond Meat Because a Great Business Doesn't Equal a Great
Stock -- Barrons.com
Citigroup is urging investors to "look beyond the headlines" and
sell Beyond Meat stock.
Analyst Wendy Nicholson launched coverage of the
alternative-protein startup Friday with a Sell rating and $123
price target. She calls the story exciting, but expects "near-term
pressure as a result of its exposure to the food service segment"
and "longer-term pressure as the [alternative meat] category
becomes more competitive."
Just Eat Takeaway.com's Grubhub Deal Is 'Hard to Digest' --
0820 GMT - Just Eat Takeaway.com's proposed all-share merger
with U.S. food-delivery peer Grubhub is hard to digest, as it will
require large investments to fend off competitors, Numis says. "We
aren't sure management are willing to invest and if they are, this
will stretch group cash flows," the brokerage says. Grubhub is the
largest food-takeaway marketplace in the U.S. and retains
leadership in key markets, notably New York, but it has been losing
market share to well-funded private players, Numis says. The deal
with Just Eat Takeaway.com valued Grubhub at $6.5 billion, but
Numis says it values the U.S. company at $3.6 billion as
competition has intensified during the pandemic given growing
Livestock Futures Finish Week Little Changed -- Market Talk
15:11 ET - Live cattle futures end trading Friday up 0.8% at
$1.00 per pound, while lean hog futures finish 0.7% lower at 49.875
cents per pound. In its WASDE report released this afternoon, the
USDA forecast that meat production will rise this year, but export
demand for meats will vary--beef exports will likely drop, and pork
exports will rise "as international demand is expected to remain
robust." For the week, cattle futures finished 0.2% lower, and hog
futures finished 0.1% higher. (email@example.com;
Estimated U.S. Pork Packer Margin Index - Jul 10
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jul 10 +$ 78.37 +$ 15.23
Jul 9 +$ 73.51 +$ 11.60
Jul 8 +$ 76.30 +$ 11.53
* 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 95.7
(Percent of Year-Ago) Select 101.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday rose 91 cents per
hundred pounds, to $204.50, according to the USDA. Select-grade
prices fell 54 cents per hundred pounds, to $194.29. The total load
count was 93. Wholesale pork prices rose/fell $x.xx, to $xx.xx a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
July 10, 2020 17:16 ET (21:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.