LIVESTOCK HIGHLIGHTS: Top Stories of the Day
July 26 2017 - 5:53PM
Dow Jones News
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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