LIVESTOCK HIGHLIGHTS: Top Stories of the Day
February 25 2020 - 5:42PM
Dow Jones News
TOP STORIES
China Lifts Import Restrictions on U.S. Farm Goods
WASHINGTON -- U.S. officials said Tuesday that Chinese leaders
have taken the first steps toward implementing the first phase of a
trade deal between the world's two largest economies, an
announcement that comes amid concerns that the coronavirus could
delay the pace of China's promise to purchase more U.S. crops and
other goods.
In a statement, U.S. officials noted that Chinese leaders have
lifted import restrictions on U.S. poultry and poultry products and
pet food, along with other actions, since the deal took effect on
Feb. 14. Those provisions were part of a 90-page written agreement
signed last month.
STORIES OF INTEREST
Burger King Franchisee Cautious on Delivery -- Market Talk
13:30 ET - Burger King's biggest franchisee says it's been
skeptical of delivery until services providers signed off on
allowing it to increase prices by 10% and restrict the items it
sold to-go. "We were not a big fan of delivery until the model
change," says Daniel T. Accordino, CEO of Burger King franchise
Carrols Restaurant Group in 4Q earnings. Carrols will install
ordering mechanisms that allow for the dual pricing structure in
May, and test the impact on its margins from there, executives say.
(heather.haddon@wsj.com; @heatherhaddon)
Subpar Discounts Leads to Less Burger King Traffic -- Market
Talk
1326 ET - Burger King's biggest franchisee says the menu of
discounts offered by its parent company had less impact in 4Q,
prompting customer visits to plunge by 6%. Carrols Restaurant Group
says promotions and discounts fell to 19% of restaurant sales in
its last quarter, from 27% the previous year. Burger King added the
Impossible Whopper and a chicken sandwich to its two items for $6
discount menu, but those and other current value options failed to
beat a 10-piece chicken nuggets for a buck deal on menus in 2018,
Carrols says. Carrols shares fall 3.7%. (heather.haddon@wsj.com;
@heatherhaddon)
USDA: Paul Kiecker to Succeed Carmen Rottenberg -- Market
Talk
13:15 ET - The US Department of Agriculture says Paul Kiecker
will become Administrator of the Food Safety and Inspection
Service, as Administrator Carmen Rottenberg will depart federal
service. Agriculture Secretary Sonny Perdue said "ensuring the
safety of America's food supply is USDA's most important
responsibility, and one that Carmen carried out with dedication and
vision." He says under Rottenberg's leadership "an unprecedented
level of collaboration was achieved with federal, state and
municipal agencies and other stakeholders." Kiecker joined FSIS as
a food inspector in 1988 and became Deputy Administrator in 2018.
(josh.beckerman@wsj.com)
FUTURES MARKETS
Cattle Futures Finish 2% Lower -- Market Talk
15:42 ET - Cattle futures finish the day down 2% to $1.1295 a
pound, leaving cattle 6.5% lower over the past four days. Demand
overseas for US meat is expected to continue to shrink due to
coronavirus. Hog futures, meanwhile, close the day 0.1% higher. Hog
futures in February are up 5% for the month, but down 4.3% from
this month's high of 67.575 cents a pound reached Feb. 19.
(kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Feb 25
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Feb 25 +$ 27.91 +$ 7.08
Feb 24 +$ 29.93 +$ 6.80
Feb 21 +$ 25.65 +$ 4.22
* 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 94.5
(Percent of Year-Ago) Select 93.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday rose 40 cents per
hundred pounds, to $207.47, according to the USDA. Select-grade
prices fell $2.47 per hundred pounds, to $199.90. The total load
count was 141. Wholesale pork prices rose 13 cents, to $65.03 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
February 25, 2020 17:27 ET (22:27 GMT)
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