LIVESTOCK HIGHLIGHTS: Top Stories of the Day
September 25 2017 - 5:40PM
Dow Jones News
TOP STORIES
Cargill Folds UK Chicken Unit into New Venture -- Market
Talk
10:24 ET - Consolidation continues among European poultry
suppliers as agribusiness conglomerate Cargill says it will combine
its UK fresh chicken operations with the poultry business of
Faccenda Foods to create an as-yet unnamed venture in which both
firms will own an equal stake. CEO of the new company, Andy
Dawkins, comes from Faccenda Foods -- like Cargill, a family-owned
company -- and Cargill's European fresh chicken director Chris Hall
will join the 6,000 person venture as chief commercial officer.
Earlier in September US chicken company Pilgrim's Pride agreed to
buy UK-based chicken processor Moy Park for $1.3B, extending its
reach into the EU, the world's third-largest chicken market by
consumption. (jacob.bunge@wsj.com; @jacobbunge)
Corn Goes from Farm Fields to Battlefields -- Market Talk
14:28 ET - The corn industry's ongoing quest to refine the most
widely grown US crop into more industrial and consumer products has
led farmers to the gun business. The National Corn Growers
Association says it's investing with Missouri-based gun oil
supplier QMaxx Products Group to develop corn-based gun oil for
cleaning, lubricating and protecting firearms, which QMaxx expects
to eventually submit for US Army analysis. The NCGA acknowledges
any corn-based gun oil market will likely translate to just a
"modest" increase in additional corn demand, but says there are
other potential applications of the same base product. Corn's
previously been processed to make foam packaging, carpet fibers and
kitty litter. (jacob.bunge@wsj.com; @jacobbunge)
STORIES OF INTEREST
Can Queso Save Chipotle? -- Market Talk
11:48 ET - Chipotle's new queso boosted traffic in the first
week of its national rollout on Sept. 12, but the gain from the
cheesy dipping sauce was short-lived, Cowen found. The investment
firm compared Facebook check-ins at Chipotle following the launch
with check-ins in the weeks leading up to it and saw that check-ins
returned to normal levels in the second week. The number of
check-ins following the queso launch were only 4% higher than the
level averaged for the first 16 days of 3Q prior to a norovirus
incident on July 17. Concluded Cowen: "We do not expect queso to be
a sustainable sales driver." (julie.jargon@wsj.com)
Kroger Goes After Whole Foods Suppliers -- Market Talk
10:11 ET - Kroger launched a website allowing local suppliers to
pitch niche products directly to buyers at the grocer's 2,800
stores, a response to rival Whole Foods Market's moves to be more
conventional. Executives at the largest US grocer plan to expand
the offering in an effort to lure any Whole Foods shoppers
dissatisfied following its recent takeover by Amazon. The market
value of Kroger and other retailers has been pinched by Amazon's
foray into the grocery business. (heather.haddon@wsj.com;
@heatherhaddon)
FUTURES MARKETS
Cattle Futures Fall on Higher Supply Outlook
Cattle futures tumbled Monday on expectations of higher supplies
early next year.
The U.S. Department of Agriculture said on Friday that feeders
placed 3% more cattle in lots for fattening in August than a year
earlier, while analysts had expected the rate of placements to fall
by 3%.
CASH MARKETS
Zumbrota, Minn Hog $2.00 Lower At $31.00 - Sep 25
Barrow and gilt prices at the Zumbrota, Minn., livestock market today
are $2.00 lower at $31.00 per hundredweight.
Sow prices are mixed. Sows weighing under 450 pounds are $27.00-$28.00,
400-450 pounds are at $27.00-$28.00, 450-500 pounds are $27.00-$28.00
and those over 500 pounds are $29.00-$30.00.
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 - Sep 25
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Sep 25 +$48.87 +$ 27.19
Sep 22 +$44.76 +$ 25.49
Sep 21 +$44.76 +$ 26.61
* 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 103.5
(Percent of Year-Ago) Select 106.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $2.36 per hundred
pounds, to $193.96, according to the USDA. Select-grade prices rose
$2.16 per hundred pounds, to $190.89. The total load count was 86.
Wholesale pork prices rose $79 cents, to $73.05 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
September 25, 2017 17:25 ET (21:25 GMT)
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