TOP STORIES

Chipotle Gets Subpoena After Virginia Norovirus Outbreak

Chipotle Mexican Grill Inc. said it received a subpoena related to a recent norovirus outbreak in a Virginia location, an indication that a federal criminal investigation into the chain's food safety problems is widening.

The disclosure of the grand jury subpoena related to the norovirus outbreak that sickened more than 135 patrons at a Sterling, Va., Chipotle came in a regulatory filing a day after the company told investors that it was caused by an employee who violated policy by coming to work sick.

Brazil's JBS in Deal with Banks to Renegotiate Debt

SAO PAULO -- Brazilian meatpacking giant JBS SA reached a deal with banks to renegotiate about 20.5 billion reais ($6.5 billion) in debt as part of a broader effort to address the fallout of a massive bribery scandal.

The agreement, disclosed in a filing late Tuesday, aims to stabilize the indebtedness of JBS's Brazilian unit for a period of 12 months. It involves a group of local and foreign banks and JBS's local unit, which accounts for less than half of the company's total revenue.

 
   STORIES OF INTEREST

Buffalo Wild Wings Earnings Miss Consensus, Outlook Lowered -- MarketWatch

Buffalo Wild Wings Inc. (BWLD) said Wednesday that it had second-quarter net income of $8.8 million, or 55 cents per share, down from $23.7 million, or $1.27 per share, for the same period last year. Adjusted EPS of 66 cents was below the $1.04 FactSet consensus. Revenue was $500.0 million, up from $490.2 million last year and below the $513.0 million FactSet consensus. Same-store sales at company-owned restaurants fell 1.2%, compared with a flat same-store sales consensus. Buffalo Wild Wings expects 2017 same-store sales to fall between 1% and 2% and adjusted EPS is expected to be between $4.50 and $5. The previous guidance was $5.45 to $5.90. Buffalo Wild Wings closed Wednesday down nearly 1%. Shares are down 24.5% for the last three months while the S&P 500 index is up 3.8% for the period. -Tonya Garcia

JBS Tamps Down Pilgrim's Pride Speculation -- Market Talk

11:02 ET - Embattled Brazilian meatpacker JBS declares its controlling stake in US poultry giant Pilgrim's Pride (PPC) "is not for sale," after a Brazilian newspaper reported agricultural conglomerate Cargill was thinking about a bid. A JBS spokesman says Pilgrim's is "an important part of JBS' strategy," and analysts regard it as one of JBS' jewels. Pilgrim's would be a prize for privately held Cargill, which runs chicken operations in Asia, Europe and Canada, but a big one: Its market cap tops $6B and strong profit margins in poultry would command a premium. Cargill's biggest acquisition was in 2011 when it paid $2.1B for Dutch animal feed maker Provimi. A Cargill spokesman declines to comment. PPC gains 3% to $24.20. (jacob.bunge@wsj.com; @jacobbunge)

Agco to Acquire Precision Planting From Monsanto

Farm equipment manufacturer Agco Corp. will acquire a line of high-tech planting equipment from Monsanto Co. after the seed company abandoned plans to sell the unit to Deere & Co. under pressure from the Justice Department.

Agco said Wednesday that Precision Planting LLC will strengthen its equipment offerings for large farmers. The Georgia-based maker of Massey Ferguson equipment didn't disclose terms of its deal to buy Precision.

 
   FUTURES MARKETS

Hog Futures Rise on Cash Prices

Lean hog futures climbed for a second consecutive day as cash-trade prices supported the market.

The going rate for hogs on the cash market has recently trended lower as packers drop their bids, but prices are still higher than futures. That has had traders pushing futures upward to close the gap.

 
   CASH MARKETS 
 
Zumbrota, Minn Hog Steady At $54.00 - Jul 26

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 26 
 
This report reflects U.S. pork packer processing margins. The margin indices 
are calculated using current cash hog or carcass values and wholesale pork 
cutout values and may not reflect actual margins at the plants. These 
estimates reflect the general health of the industry and are not meant to 
be indicative of any particular company or plant. 
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 26       +$32.29             +$ 85.15 
Jul 25       +$36.01             +$ 89.37 
Jul 24       +$34.16             +$ 87.86 
 
* 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  104.3 
      (Percent of Year-Ago)     Select  104.4 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Wednesday fell 55 cents per hundred pounds, to $207.07, according to the USDA. Select-grade prices fell $1.06 per hundred pounds, to $197.87. The total load count was 144. Wholesale pork prices fell $1.96, to $100.01 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

July 26, 2017 17:38 ET (21:38 GMT)

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