LIVESTOCK HIGHLIGHTS: Top Stories of the Day
February 20 2018 - 05:55PM
Dow Jones News
TOP STORIES
Sanderson Holders Again Reject Antibiotics Proposal -- Market
Talk
1702 ET - Sanderson Farms' shareholders rejected again--albeit
by a narrower margin--a shareholder proposal to phase out the use
of antibiotics in chickens. The vote was 8.2M votes in favor and
10.1M against vs. 5.71M to 12.4M a year ago. Rival poultry
processors like Tyson Foods, Pilgrim's Pride and Perdue Farms have
increasingly moved to eliminate antibiotics from chicken flocks.
Sanderson said in an annual proxy filing that it has a "detailed
contingency plan" to eliminate those drugs if competitive pressures
require and estimates that it would wean its entire chicken
operation from antibiotics within 12 months. Shares close down 1.5%
at $131.44, up 38% over the past 12 months.
(maria.armetnal@wsj.com; @mjarmental)
Proposed Rules Would Allow Meat-Packers to Slaughter Hogs
Faster
COLDWATER, Mich. -- Proposed rules allowing meat-packers to
slaughter hogs faster and play a bigger role in policing food
safety are intended to free up government inspectors while making
plants more efficient. But the rules, which could take effect this
year, have drawn criticism.
Consumer advocates question whether companies can guarantee the
cleanliness of their pork while workers take on some tasks
previously reserved for U.S. Department of Agriculture inspectors.
Meanwhile, worker-rights groups say speeding up slaughter lines
would strain workers whose jobs are already difficult and
dangerous.
Texas Roadhouse Reports Revenue, Profit Growth
Texas Roadhouse Inc. (TXRH) reported its fourth-quarter revenue
and profit rose as traffic gains helped the steak-restaurant chain
achieve its 32nd consecutive quarter of same-restaurant sales
growth.
The Louisville, Ky.-based company reported a profit of $28.6
million, or 40 cents a share, up from $20.7 million, or 29 cents a
share, a year earlier. Revenue jumped 13% to $545.1 million.
STORIES OF INTEREST
Tyson Looking for Deals, but Not Pinnacle -- Market Talk
16:50 ET - Tyson Foods is touting the meatpacker's efforts to
reinvent itself as a packaged food company, and could do more
acquisitions to bulk up -- but probably not Pinnacle Foods. Tyson
CEO Tom Hayes tells attendees at the annual Consumer Analyst Group
of New York conference that the meat giant is looking for
fast-growing protein brands, but "immediately added that Pinnacle
Foods does not have much protein in its portfolio," according to
JPMorgan analysts. Tyson vaulted ahead in packaged foods with its
2014 takeover of Hillshire Brands, which at the time had struck a
deal to buy Vlasic pickle and Log Cabin syrup supplier Pinnacle.
According to JPM, "many investors" have been wondering recently
whether Tyson might take a look at Pinnacle. (jacob.bunge@wsj.com;
@jacobbunge)
A2 Milk, Fonterra Deal A Win With Investors -- Market Talk
1639 ET - A2 Milk Company's newly-minted strategic partnership
with the world's largest dairy exporter Fonterra Co-Operative
Limited has seen A2's share price, which had already roughly
quadrupled last year, rise 16% in early trade on Wednesday to an
all-time high of NZ$10.80. A2 has experienced very strong growth in
market share, and one of the few issues analysts have seen with the
stock is whether it could continue to grow at such a strong level
without boosting its supply of milk. Under the deal, Fonterra will
manufacture A1 protein-free products for certain priority markets
in Southeast Asia and the Middle East exclusively for the A2 Milk
Company, as well as giving Fonterra an exclusive licence for the
production, distribution, sale and marketing of a2 Milk-branded
fresh milk in New Zealand. (ben.collins@wsj.com)
FUTURES MARKETS
Cattle, Hog Futures Start Week Higher
Livestock futures rose after the long weekend.
Cash prices for physical cattle bounced late last week, with
meat-packers across the country's major feeding regions paying $130
per 100 pounds on a live basis for cattle to slaughter. That was $4
above the previous week, a sharp uptick prompted by tighter
slaughter-ready supplies and a higher futures market. Sales on a
dressed basis, another way of pricing physical cattle, rose to
$205, $5 higher than a week earlier.
CASH MARKETS
Zumbrota, Minn Hog Steady At $41.00 - Feb 20
Barrow and gilt prices at the Zumbrota, Minn., livestock market
are steady compared to Monday at $41.00 per hundredweight. Sow
prices are steady compared to Monday. Sows weighing 400-450 pounds
are at $47.00-$49.00, 450-500 pounds are $47.00-$49.00 and those
over 500 pounds are $51.00-$53.00.
The day's total run is estimated at 125 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Feb 20
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
*
Feb 20 +$25.11 +$ 38.99
Feb 19 +$21.84 +$ 36.26
Feb 16 +$19.07 +$ 34.35
* 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 112.6
(Percent of Year-Ago) Select 110.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday rose $3.35 per
hundred pounds, to $215.92, according to the USDA. Select-grade
prices rose $2.97 per hundred pounds, to $210.40. The total load
count was 113. Wholesale pork prices rose $1.27, to $78.54 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
February 20, 2018 17:40 ET (22:40 GMT)
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