LIVESTOCK HIGHLIGHTS: Top Stories of the Day
July 25 2017 - 5:35PM
Dow Jones News
TOP STORIES
McDonald's Earnings Beat Expectations
McDonald's Corp.'s bet that low prices will bring in customers
is paying off for now.
The burger giant, which beat analysts' expectations in the
second quarter, said its $1 drinks promotion and a new line of
burgers helped reverse a sales slump in its U.S. business.
But price promotions can't drive sales over the long term, and
the company said it isn't relying on short-term tactics to retain
customers. After losing customers to rival fast-food chains in the
last few years in an increasingly competitive fast-food market,
McDonald's decided it needed to first get customers back in the
restaurants.
McDonald's China Sale to Close in Coming Weeks -- Market
Talk
12:47 ET - McDonald's (MCD) deal to sell an 80% stake in its
China and Hong Kong operations to a Chinese state-owned company and
US private-equity firm Carlyle Group is expected to close in the
coming weeks, the company tells investors. With the closing of that
deal, MCD will have reached its goal of selling 4,000 restaurants
to other operators a year earlier than originally planned. CFO
Kevin Ozan says MCD will use proceeds of the sale to buy back
company shares. (julie.jargon@wsj.com)
STORIES OF INTEREST
Mexico's Lala Could Use Debt, Equity for Acquisitions -- Market
Talk
13:02 ET - Debt-free Mexican dairy-products company Grupo Lala
(LALA.MX) could take on financing for up to 2.5 or 3 times 12-month
Ebitda for an eventual acquisition, and wouldn't rule out issuing
stock "if we believe this is the right path to follow," CFO Alberto
Arellano tells analysts. Following a Brazilian media report that
Lala is the front-runner to buy J&F's dairy business Vigor, CEO
Scot Rank says Lala has "no relevant information at this time in
relation to any possible acquisition." In North America, Lala looks
for value-added products in high-growth niche segments, while in
the rest of the Americas it's interested in "significant operations
that allow us to enter our market with a solid manufacturing base,"
he adds. Lala gains 1.2% following strong 2Q earnings. "We think
the shares can continue to have an overhang on this potential
acquisition," says Credit Suisse. (anthony.harrup@wsj.com)
Grain, Soybean Futures Selloff Continues
Grain and soybean futures extended losses as traders soured on
the near-term price outlook for the crops.
Soybean futures initially rose overnight after the U.S.
Department of Agriculture said the share of the U.S. oilseed crop
in good-or-excellent condition fell to 57%, down an unexpected 4%
from a week earlier.
FUTURES MARKETS
Cattle Futures Turn Lower on Supply Concerns; Hogs Gain
Cattle futures reversed course, falling as traders fretted over
increasing supplies.
Wholesale beef prices slid as of midday Tuesday, under pressure
because of a seasonal tendency to eat less red meat in summer. A
U.S. Department of Agriculture report Monday afternoon also put
frozen beef stocks in June at 416.7 million pounds, up 1% from May
but down 10% from a year earlier. That was larger than what some
analysts expected.
CASH MARKETS
Zumbrota, Minn Hog Steady At $54.00 - Jul 25
Barrow and gilt prices at the Zumbrota, Minn., livestock market today
are steady at $54.00 per hundredweight.
Sow prices are steady. Sows weighing under 450 pounds are
$60.00-$62.00, 400-450 pounds are at $60.000-$62.00, 450-500 pounds
are $60.00-$62.00 and those over 500 pounds are $64.00-$66.00.
The day's total run is estimated at 150 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Jul 25
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Jul 25 +$36.01 +$ 89.37
Jul 24 +$34.16 +$ 87.86
Jul 21 +$35.13 +$ 90.29
* 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 103.8
(Percent of Year-Ago) Select 104.9
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday rose 16 cents per
hundred pounds, to $207.62, according to the USDA. Select-grade
prices rose $1.04 per hundred pounds, to $198.93. The total load
count was 113. Wholesale pork prices rose 70 cents, to $101.97 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
July 25, 2017 17:20 ET (21:20 GMT)
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