LIVESTOCK HIGHLIGHTS: Top Stories of the Day
April 20 2018 - 05:47PM
Dow Jones News
TOP STORIES
Meatpackers See Stronger Beef Demand Ahead -- Market Talk
13:01 ET - Wholesale beef prices inch higher as retailers gear
up for a late start to grilling season. Prices rise 21 cents to
$211.55 per 100 pounds on Friday morning after falling for most of
the week. Wintry weather limited demand for beef in recent weeks.
Retail prices fell as consumers avoided sirloins, t-bones and other
grilling cuts. But forecasts for clear skies and warmer
temperatures in various parts of the country have encouraged
meatpackers to start raising prices, says Dennis Smith of Archer
Financial Services. "Improving seasonal demand appears to be at
play with the first warm and spring-like weekend on tap. Most are
expecting excellent beef clearance this weekend," he says. CME
April live cattle futures rise 0.7% to $1.186 a pound.
(benjamin.parkin@wsj.com; @b_parkyn)
Farm Linked to Egg Recall Had Rodent Problems, Report Finds --
Update
The North Carolina farm at the center of a large egg recall had
ongoing problems with rodents along with other unsanitary
conditions, according to a U.S. government report this week that
has reignited concerns over food safety in an industry that has
shrunk to a small number of producers.
An inspection report by the U.S. Food and Drug Administration
said poultry houses at a facility owned by Rose Acre Farms, one of
the largest U.S. egg producers, had prolonged rodent infestation.
In addition, the report Tuesday said conditions in its
egg-processing facility allow for pathogens to survive and
spread.
STORIES OF INTEREST
Could Conagra or Kraft Heinz Buy Pinnacle? -- Market Talk
12:40 ET - Analysts say Conagra is the most likely buyer for
Pinnacle Foods, and they expect activist investors at Jana Partners
to push for a sale of the company. Kraft Heinz would be another
potential candidate, says JPMorgan analyst Ken Goldman. Both
Conagra and Kraft Heinz have large frozen-food businesses, which
would fit well with Pinnacle's Birds Eye frozen vegetable brand.
Putting together Conagra and Pinnacle "would generate unusually
powerful cost synergies," Goldman said. Both businesses are already
growing and launching high-margin new products, notes RBC Capital
analyst David Palmer, who also mentions "frozen distribution
synergies and potential innovation across brands." Pinnacle's
shares are up 9% after Jana disclosed its stake in Pinnacle
yesterday after the market closed. (annie.gasparro@wsj.com)
FUTURES MARKETS
Cattle Feeders Curb Herd Growth
Cattle producers are feeling less bullish.
Feedyard operators eased their herd growth in March, ending a
year of relentless expansion as profitability took a hit.
The U.S. Department of Agriculture said Friday that feedyard
operators placed 1.92 million cattle in their lots for fattening
last month, down 9% from a year earlier. That was the first month
of smaller placements in a little over a year.
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Apr 20
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Apr 20 +$14.75 +$ 14.40
Apr 19 +$14.84 +$ 15.26
Apr 18 +$21.95 +$ 15.17
* 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 97.6
(Percent of Year-Ago) Select 98.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday rose 64 cents per
hundred pounds, to $211.98, according to the USDA. Select-grade
prices rose $1.65 per hundred pounds, to $200.13. The total load
count was 142. Wholesale pork prices fell 40 cents, to $67.10 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
April 20, 2018 17:32 ET (21:32 GMT)
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