LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 23 2020 - 5:25PM
Dow Jones News
TOP STORIES
More Restaurants File Lawsuits Over Chicken -- Market Talk
14:06 ET - More national restaurant chains file price-fixing
lawsuits against top chicken companies. White Castle, Golden Corral
and Cracker Barrel this week filed separate complaints in a Chicago
federal court alleging that chicken suppliers including Pilgrim's
Pride, Tyson Foods and others artificially inflated chicken meat
prices by coordinating data and price reporting, and through direct
communication among sales execs. A Tyson spokesman says the company
will contest the claims, which he called unfounded; Pilgrim's
representatives didn't respond to a request for comment. The
lawsuits come after Pilgrim's last week reached a $110.5M plea deal
in a criminal price-fixing case pursued by the Justice Department.
(jacob.bunge@wsj.com; @jacobbunge)
European Parliament Defends Veggie 'Burgers' Against Farmers' Objections
The European Parliament has voted against a measure that
proposed a ban on referring to vegetable-based products with
meat-related terms such as 'veggie burgers', in a blow to the hopes
of the continent's livestock sector. Lawmakers rejected all
proposals to reserve meat-related names to products containing
meat, the European Parliament's Committee on Agricultural and Rural
Development said Friday. The vote was 379 against and 284 votes in
favor.
Bloomin' Up on Indoor Dining Increases -- Market Talk
0907 ET - Bloomin' Brands beats 3Q expectations though the
casual-dining chain still posts a double-digit same-store sales
decline. The Tampa, Fla.-based chain says its US same-store sales
declined 12.8% in 3Q. Indoor dining is driving much of the Outback
Steakhouse-owner's sales, including in Florida where the state last
month removed capacity caps for restaurants, executives say.
Bloomin' up 0.8% in pre-market trading. (heather.haddon@wsj.com;
@heatherhaddon)
STORIES OF INTEREST
Plant-Based Meat and Dairy to Become $8.9B Market in Europe by 2025, ING Says -- Market Talk
1221 GMT - The plant-based meat and dairy market is set to be
worth EUR7.5 billion in Europe by 2025 compared to EUR4.4 billion
last year, ING says. There is a growing number of meat and dairy
companies entering the plan-based market in order to cater to
shifting consumer demand, ING says, adding that consumers are
increasingly considering their health, animal welfare and
sustainability in their decision making. However, ING notes the
rise of plant-based sales is coming from a small base and that
alternatives represent only 0.7% of the market for meat and 2.5% of
the dairy market. (maitane.sardon@wsj.com)
Danone's Alpro to Draw Eco-Conscious Shoppers, GlobalData Says -- Market Talk
0938 GMT - Environmental goals by Alpro, a plant-based food and
drink company that Danone bought as part of an EUR11 billion deal
in 2016, are expected to draw shoppers, GlobalData says. A recent
survey from GlobalData found that 12% of consumers say cutting
their carbon footprint is their top priority and 19% say that
priority became significantly more important to them following the
coronavirus pandemic. Alpro has pledged to introduce 100%
recyclable packs and paper-based cups for its yogurt and cut 60% of
water use per product. "Its product will potentially become a
standard for all other health and sustainability-focused brands,"
says Ryan Whittaker, consumer analyst at GlobalData.
(dieter.holger@wsj.com; @dieterholger)
Dairy Farm International's Valuation Looks Attractive -- Market Talk
0530 GMT - Dairy Farm International's valuation looks attractive
and its headline forward PE of under 17 times is below its Asean
peers' average of 20-25 times, DBS Group Research says. The food
and personal hygiene products retailer's margin improvement from
its 1H earnings is also a positive and could help drive its
operational efficiencies over the longer term, DBS says. Meanwhile
the ongoing transformation of its South Asia supermarkets should
drive earnings and a share price re-rating, DBS notes. The bank
maintains its buy rating but cuts its target price to US$4.44 from
US$4.86, citing minor setbacks from the Covid-19 pandemic due to
its exposure to tourist-dependent markets. Shares are flat at
US$3.76. (justina.lee@wsj.com)
FUTURES MARKETS
Hog Futures Finish Higher -- Market Talk
14:57 ET - Lean hog futures trading on the CME finished up 1.3%,
at 67.025 cents per pound. The uptick in futures came following the
release of the USDA's cold storage report late Thursday, which was
seen as bullish by livestock traders. "[The report] showed pork
supplies continue to move very efficiently through the system,"
says Steiner Consulting Group. "This marks the fifth month in a row
that stocks have been more than 20% below a year ago and largely
ignored seasonal trends." Meanwhile, live cattle futures finished
trading Friday up 0.1% to $1.03575 per pound.
(kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 23
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Oct 23 +$ 60.18 +$ 69.79
Oct 22 +$ 71.75 +$ 84.67
Oct 21 +$ 62.57 +$ 81.96
* 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 92.0
(Percent of Year-Ago) Select 96.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell $1.37 per hundred
pounds, to $207.49, according to the USDA. Select-grade prices rose
32 cents per hundred pounds, to $191.40. The total load count was
148. Wholesale pork prices fell $6.92, to $91.53 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 23, 2020 17:10 ET (21:10 GMT)
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