TOP STORIES

Brazil Suspends Some Beef Exports to the U.S.

SAO PAULO--Brazil has suspended beef exports from five of the country's meatpackers to the U.S. following adverse reactions among cattle to a foot-and-mouth vaccine, according to the national meat-exporting group Abiec.

Abiec didn't immediately have any further information on which meatpackers were affected by the measure.

In a statement Thursday, Abiec said the suspension was ordered by Brazil's Agriculture Ministry last Friday. The ministry could not immediately be reached for comment.

Kroger Stays the Course with Share Buybacks -- Market Talk

12:26 ET - Kroger (KR) rebounds from an earlier low reached after it announced another $1B share-buyback program beginning in September, upping the payout 2c to 50c. The move allows for less free cash for the US's largest grocer to make a counter-bid to Amazon (AMZN) pending acquisition of Whole Foods Market (WFM). The repurchase indicates "confidence in our long-term strategy," KR CEO Rodney McMullen tells those gathered for its annual meeting. KR now up 0.3% to $22.44, up from a low of $22.02 earlier Thursday. (heather.haddon@wsj.com; @heatherhaddon)

 
   STORIES OF INTEREST

Commerce Secretary: No Antitrust Concerns Over Amazon -- Market Talk

12:20 ET - Commerce Secretary Wilbur Ross says Amazon (AMZN) hasn't done anything that would trigger antitrust concern. According to a transcript from Fox Business Network's Varney & Co., he says acquiring Whole Foods (WFM) is a "clever move ... . But I surely don't see any anti-trust implications in that." He adds it's hard to predict the response to anything in a populist climate, "but I don't believe that Amazon has been using predatory pricing or any such thing to compete unfairly. And it seems to me what America is all about is competing fairly." AMZN said last week it was acquiring WFM for $13.7B, including debt, its first major foray into brick and mortar. (laura.stevens@wsj.com; @LauraStevensWSJ)

Hain's CEO Speaks To Investors About Tough Year -- Market Talk

10:32 ET - Hain Celestial's (HAIN) CEO addresses investors and analysts on a conference call for the first time in over a year, sharing several quarters of financials that had been delayed due to issues with revenue recognition. "Everything has happened on my watch so I accept responsibility," founder and CEO Irwin Simon says. "It's been a tough year." He says digging back through the company's financials has "been a distraction of resources," and that "it's been a tough 2017 for every other food company but that's not what I need to worry about. I need to worry about Hain." HAIN posted a 6% decline in US sales, where it has removed some products from shelves as part of a cost-cutting plan, and it also faces increased competition for natural and organic brands. Shares down 2.2%. (annie.gasparro@wsj.com)

Restaurants Aim To Drive More Apple Pay Usage -- Market Talk

16:28 ET - Apple (AAPL) Pay is getting assistance breaking into national restaurant chains from Punchh, a startup that supports restaurant chains reward systems in mobile wallets. Punchh says it's updating its restaurant platform so that Apple Pay users at places like Quiznos will be prompted to add the restaurant's loyalty program to the Apple Wallet. Afterward, customers will receive special offers to redeem for future visits--a perk that Punchh says will encourage more Apple Pay usage. During an interview earlier this year, Apple Pay Executive Eddy Cue said restaurants and gas stations would be the hardest for places for the company to gain traction. The move comes as Apple faces increasing competition in the payment category. (tripp.mickle@wsj.com)

 
   FUTURES MARKETS

Pork Belly Stocks Flop to Record Low, as Hog Futures Slide

CHICAGO--Hog futures fell Thursday ahead of a government report that showed frozen pork belly stocks last month dropped to a record low.

In a report released after the markets closed, the U.S. Department of Agriculture said that stocks of pork bellies in commercial freezers fell almost 60% in May from a year earlier to 31.6 million pounds and were down 6% from April. That was the lowest on record for the month of May.

Lean hog futures for July delivery dropped ahead of the report, sliding 1.2% to 85.025 cents a pound at the Chicago Mercantile Exchange as traders locked in profits on a recent rally that saw prices soar to a 12-month high on Wednesday.

 
   CASH MARKETS 
 
Zumbrota, Minn Hog Steady At $55.00 - Jun 22

Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $55.00 per hundredweight.

Sow prices are steady. Sows weighing under 450 pounds are $41.00-$43.00, 400-450 pounds are at $41.00-$43.00, 450-500 pounds are $41.00-$43.00 and those over 500 pounds are $46.00-$48.00.

The day's total run is estimated at 100 head.

Prices are provided by the Central Livestock Association.

 
Estimated U.S. Pork Packer Margin Index - Jun 22 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Jun 22       +$21.22              +$82.92 
Jun 21       +$21.89              +$85.07 
Jun 20       +$17.85              +$81.48 
 
* 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  111.3 
      (Percent of Year-Ago)     Select  109.4 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Thursday fell $2.54 per hundred pounds, to $242.88, according to the USDA. Select-grade prices fell $1.98 per hundred pounds, to $216.92. The total load count was 123. Wholesale pork prices fell $1.00, to $98.97 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

June 22, 2017 17:36 ET (21:36 GMT)

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