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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