LIVESTOCK HIGHLIGHTS: Top Stories of the Day
May 15 2018 - 5:50PM
Dow Jones News
TOP STORIES
Tyson Invests $850M in Chicken Rendering -- Market Talk
10:25 ET - As meat giant Tyson Foods ramps up poultry production
to supply more chicken strips, breasts and wings, it's also looking
for homes for the feet, necks and giblets that don't have as many
fans among U.S. consumers. Tyson announces an $850M deal for
American Proteins, a Georgia rendering company with plants across
the chicken belt in the U.S. southeast and midwest. The acquisition
will let Tyson turn more chicken byproducts into feed for pets and
fish farms, markets that have taken on greater importance for U.S.
chicken companies after China--a big market for chicken feet and
other products--largely closed to U.S. poultry imports after bird
flu outbreaks in 2015. Tyson estimates about $550M in annual sales
for American Proteins. (jacob.bunge@wsj.com; @jacobbunge)
Chipotle To Host Special Mid-quarter Call on June 27 --
MarketWatch
Chipotle Mexican Grill Inc. (CMG) said Tuesday it will host a
special mid-quarter investor call on June 25 at 4:15 pm ET. The
purpose of the call is to discuss the company's strategy under its
new chief executive, Brian Niccol. Chipotle said during its
earnings announcement
(http://www.marketwatch.com/story/it-wasnt-the-queso-chipotles-new-ceo-and-price-hikes-drive-earnings-beat-2018-04-26)
that it would host an additional call to elaborate on growth plans.
Chipotle shares are up 47.1% for 2018 so far while the S&P 500
index is up 2.1% for the period.
STORIES OF INTEREST
Algae Blooms on the Rise in America's Lakes -- Market Talk
00:01 ET - Toxic algae blooms in U.S. lakes represent a "growing
epidemic," according to a new report by the Environmental Working
Group. The NGO says the thick carpets of a pea soup-like substance
caused by farm fertilizers and industrial sources that can foul
drinking water are getting worse. There were 3 blooms in 2010
versus 169 in 40 states last year. EWG links the surge to
more-intensive crop and livestock production. It argues that
eligibility for federal farm subsidies should be tied to compliance
with sustainable farm practices like planting grass buffers between
farm fields and streams and more carefully targeting fertilizer
applications to curb runoff. (jesse.newman@wsj.com;
@jessenewman13)
Kroger's CEO Pay Falls on Performance Stumbles -- Market
Talk
09:51 ET - Kroger CEO Rodney McMullen's total compensation fell
13% last fiscal year as the U.S.'s largest grocer fell down on its
performance-based bonus goals. Kroger hit less than 4% of its
performance targets, the lowest percentage in at least a decade.
The targets include sales growth, net operating profit gains,
online shopping expansion and internal goals surrounding the
company's "customer-first strategy." The bonuses last year "did not
meet many of our business plan objectives," the company writes in a
filing. McMullen earned $11.5M in FY17, down from $13.2M in 2016.
(heather.haddon@wsj.com; @heatherhaddon)
Restaurants a Weak Spot in April Retail Sales -- Market Talk
08:38 ET - Most categories contributed to the 0.3% gain for U.S.
retail and food-service sales in April, based on today's report
from the Commerce Department. Grocery-store sales rose 0.5% on the
month, non-store retailers saw a 0.6% gain and clothing stores were
up 1.4% from March. But among the weak spots was the food services
and drinking places segment. Sales at bars and restaurants fell
0.3% in April from the prior month, the largest drop in more than a
year. Of course, that came after a healthy 1.2% gain in March. But
restaurant sales rose 3.8% in April from a year earlier, lagging
behind the 4.7% annual gain for sales across all categories.
(ben.leubsdorf@wsj.com; @BenLeubsdorf)
FUTURES MARKETS
Cattle Futures Fall to 18-Month Low
Cattle futures tumbled to the lowest point in a year and a half
as traders bet supplies would weigh down prices this summer.
Beef prices often get a boost in springtime as demand for cuts
to grill outside picks up, which helps lift the broader cattle
market. But traders this week bet that rally was coming to an end,
while supplies of fattened cattle ready to go to slaughterhouses
would rise in the weeks and months to come.
Prices for cattle started the week sharply lower, falling to the
bottom end of their daily trading range on Monday, before extending
those losses on Tuesday. Contracts for June delivery fell 1.6% to
$1.02975 a pound at the Chicago Mercantile Exchange. That was the
lowest close since November 2016.
Hog futures followed the cattle market lower. June-dated
contracts fell 1.9% to 74.725 cents a pound.
CASH MARKETS
Zumbrota, Minn Hog Steady At $38.00 - May 15
Barrow and gilt prices at the Zumbrota, Minn., livestock market
are steady at $38.00 per hundredweight.
Sow prices are $2.00 lower. Sows weighing 400-450 pounds are at
$31.00-$33.00, 450-500 pounds are $31.00-$33.00 and those over 500
pounds are $35.00-$37.00.
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 - May 15
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
May 15 +$13.22 +$27.90
May 14 +$15.29 +$26.72
May 11 +$15.91 +$25.90
* 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 92.7
(Percent of Year-Ago) Select 93.4
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell 48 cents per
hundred pounds to $231.64, according to the USDA. Select-grade
prices rose 39 cents per hundred pounds to $209.51. The total load
count was 145. Wholesale pork prices rose 55 cents to $73.38 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 15, 2018 17:35 ET (21:35 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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