LIVESTOCK HIGHLIGHTS: Top Stories of the Day

Date : 02/14/2018 @ 6:00PM
Source : Dow Jones News

LIVESTOCK HIGHLIGHTS: Top Stories of the Day

TOP STORIES

 

Tyson Bulks Up in Grain to Feed Chickens -- Market Talk

16:48 ET - Tyson Foods is in the process of revamping itself as a packaged foods company, but the meat giant takes a page from the grain industry with the planned purchase of three Tennessee grain elevators from The Andersons, an Ohio grain and transport firm. Tyson says the facilities will provide feed for chickens that supply its plant in Union City, Tenn. as well as a new plant that's planned for Humboldt, Tenn. Owning such facilities is an important part of Tyson's broader effort to shift its portfolio toward higher-value products, like chicken raised without antibiotics, since Tyson can work directly with local farmers to get the crop varieties needed to formulate specialty feeds. (jacob.bunge@wsj.com; @jacobbunge)

 

Bunge Reports Loss -- Update

The chief executive of Bunge Ltd. said agricultural firms can't count on deals alone to boost profitability, as the farm economy struggles under a global crop glut that has hurt grain prices.

The grain trading firm reported a quarterly loss Wednesday, pushing its shares down amid speculation the company could be bought by a larger rival. Chicago-based Archer Daniels Midland Co. has approached Bunge about a takeover, The Wall Street Journal reported last month.

Bunge's 48-cents-a-share loss for the quarter compared with a profit of $271 million, or $1.83 a share, in the prior-year period. On an adjusted basis, the company earned $103 million, or 67 cents a share, down from $1.70 a share a year earlier.

 

STORIES OF INTEREST

 

Investors Cheer Chipotle CEO Choice -- Market Talk

12:32 ET - Investors are cheering the appointment of Brian Niccol as CEO of Chipotle. Shares of Chipotle, which rallied in after-market trading on Tuesday after WSJ reported the news, are up more than 14% in mid-day trading Wednesday. Niccol, the former Taco Bell CEO, is expected to bring Chipotle some of the youthful flair he used to turn around Taco Bell. William Blair noted that, "While the man who oversaw the naked egg taco and Doritos-themed products might seem like an odd choice to lead Chipotle's food with integrity mission... Mr. Niccol has a well-earned reputation as a seasoned restaurant executive with turnaround expertise, and we expect more new menu items as well as reinvigorated marketing under his leadership at Chipotle." (julie.jargon@wsj.com)

 

Blue Apron Up on Cautious Optimism -- Market Talk

11:07 ET - Blue Apron up 2% after beating expectations on 4Q losses, and management's message that "we have a lot of work to do, but we think the worst is behind us," as Barclays puts it. "We continue to view the turn-around at Blue Apron as early-stage and still subject to operational and competitive risk," the Wall Street firm writes. Raymond James remains cautious "given concerns around customer churn and competition." (heather.haddon@wsj.com; @heatherhaddon)

 

FUTURES MARKETS

 

Cattle Futures Rise to 8-Month High

Cattle futures resumed their upward course, closing at the highest point in eight months.

Traders expect cash prices for physical cattle to rise this week, betting that a short-term supply squeeze will force meatpackers to raise their bids if they want to secure inventory for their plants.

Live cattle futures for February delivery rose 0.7% to $1.2765 a pound at the Chicago Mercantile Exchange, the highest close since June 12. The more active April contract also rose, as did futures for feeder cattle.

CME April lean hog futures rose 1.8% to $70.65 a pound.

 

CASH MARKETS

 
Zumbrota, Minn Hog $1.00 Lower At $43.00 - Feb 14 
 

Barrow and gilt prices at the Zumbrota, Minn., livestock market today are $1.00 lower at $43.00 per hundredweight.

Light weight sows are $4.00-$6.00 higher and heavy weight sows are $4.00 higher. Sows weighing 400-450 pounds are at $55.00, 450-500 pounds are $55.00 and those over 500 pounds are $57.00-$59.00.

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 - Feb 14 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
                                      * 
Feb 14       +$14.79              +$34.52 
Feb 13       +$12.06              +$33.92 
Feb 12       +$ 8.75              +$32.57 
 
* 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  110.3 
      (Percent of Year-Ago)     Select  108.7 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Wednesday rose 45 cents per hundred pounds, to $207.81, according to the USDA. Select-grade prices rose 38 cents per hundred pounds, to $203.51. The total load count was 124. Wholesale pork prices rose 28 cents, to $76.46 a hundred pounds, based on Omaha, Neb., price quotes.

 

(END) Dow Jones Newswires

February 14, 2018 17:45 ET (22:45 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.


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