TOP STORIES

Meat Production Outlook Rises as Slaughtering Reopens -- Market Talk

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%. (paulo.trevisani@wsj.com; @ptrevisani)

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 pandemic.

"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' -- Market Talk

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 demand. (adria.calatayud@dowjones.com)

FUTURES MARKETS

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. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
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 - 
                             integrated operations 
 
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. 
 
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   95.7 
      (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)