LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 07 2015 - 6:02PM
Dow Jones News
By Ilan Brat
TOP STORIES
Cargill Looks to Steer Past Beef Pressures -- Market Talk
Struggles in the beef business bruised Cargill's animal-protein
profit in its first-quarter, but there may be hope among the
hamburgers. JPMorgan noted last week that beef-packing margins had
surged and were at the highest seasonal levels in a decade despite
still-tight supply. The bank boosted its expectations for beef at
Tyson (TSN), which could hold hold promise for Cargill, among the
largest U.S. beef processors.
Monsanto to Cut 2,600 Jobs in Restructuring
Monsanto Co., buffeted by a slumping global farm economy,
outlined plans to slash 12% of its workforce and restructure its
business as it reported a larger-than-expected quarterly loss. The
biotech-seed maker said it planned to cut 2,600 jobs while
"streamlining and reprioritizing" commercial and research efforts
as it grapples with declining crop prices that have pinched incomes
for farmers, its main customers. Monsanto projected earnings in its
fiscal 2016 that fell below analysts' expectations. The St. Louis
company also Wednesday unveiled a new stock-buyback program
totaling $3 billion, which it plans to complete within the next six
months. Monsanto shares were down 0.48% at $87.12 in midday
trading. The stock has declined 26% this year. "When you narrow the
lens to the next 12 months, the industry continues to face a
challenging macro environment and we've moderated our outlook, "
said Hugh Grant, Monsanto's chief executive, said on a
post-earnings conference call.
STORIES OF INTEREST
TPP Opens Canada Door Slightly to U.S. Dairy -- Market Talk
It's a marvel that the Trans-Pacific Partnership trade agreement
managed to open Canada's highly protected dairy industry to more
U.S. dairy imports, even if slightly, says Cornell University
professor Andrew Novakovic. The deal, which apparently will allow
in U.S. dairy-product imports equal to 3.25% of the Canadian milk
supply, will give the U.S. industry the opportunity to build
relationships with Canadian companies and trust with Canadian
consumers, he says. "As a beginning, it is assuredly modest, but
what is terribly important is that it is a beginning," he says.
S&P Downgrades DuPont as Challenges Mount -- Market Talk
S&P drops DuPont (DD) a notch to A minus and the ratings
outlook remains negative, meaning further downgrade isn't out of
the question, as the clouds around the agriculture and chemical
conglomerate don't look to clear up soon. S&P notes DuPont has
been "unable to mitigate" persistent weakness in agricultural
markets like Brazil and the dollar's gains, which has dented the
company's sizable overseas sales. "We now believe the impact of
these variables is more severe and sustained than our earlier
assumptions," in reassessing DuPont's prospects following the
abrupt exit announcement for CEO Ellen Kullman.
FUTURES MARKETS
U.S. Live Cattle Futures Climb on Profit-Taking, Bargain-Buying; Hogs Mixed
CHICAGO--U.S. live-cattle futures closed sharply higher for a
second consecutive session on Wednesday, bolstered by
bargain-buying and investors unwinding bets that prices would fall.
October cattle futures hit their daily upper limit of a 4.5 cent
rise before losing some ground and finishing up 4.23 cents, or
3.4%, at $1.294 a pound at the Chicago Mercantile Exchange.
Most-active December cattle futures advanced 2.93 cents to $1.362 a
pound. Feeder-cattle futures for October rose 2.425 cents to
$1.8495 a pound. Concerns that demand for beef would slacken amid
record pork and poultry production have dragged the cattle market
sharply lower in recent weeks, to a level some investors suspect is
beginning to attract bargain-buying. On Wednesday, traders unwound
so-called short bets that prices would fall, which tends to support
prices, and the move was further supported by investors coming in
to buy what they consider relatively cheap futures contracts, said
Tim Hackbarth, a senior market strategist at Chicago brokerage
Zaner Group. Still, he said supply fundamentals are likely to
continue to weigh on the market. Cattle weights are particularly
heavy, and supplies of available cattle are expected to grow in the
months ahead, which has compounded worries about a market that has
suffered weakened demand due to the surge to record-high prices
last year and a stronger dollar that hampers exports. He added that
cattle prices have fallen as a percentage far less than hog prices
this year, auguring a further decrease for cattle futures prices.
Hog futures were mixed, with strength in cash markets bolstering
the short-dated contract even as concerns about the growth of hog
supplies this fall weighs on longer-dated contracts.
CASH MARKETS
Zumbrota, Minn., Hog Market $1.00 higher at $48 - Oct. 7
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today were $1.00 higher at $48.00 per hundredweight. Sow prices
steady. Sows weighing under 450 pounds were at $41.00 to $43.00;
400 to 450 pounds were at $41.00 to $43.00; 450 to 500 pounds were
at $41.00 to $43.00; and those over 500 pounds were at $45.00 to
$47.00.
The day's total run was estimated at 225 head.
Estimated U.S. Pork Packer Margin Index - Oct. 7
Date Standard Estimated margin
Op Mgn at vertically
Index integrated operations*
Oct 7 +$25.80 +$ 36.04
Oct 6 +$25.80 +$ 35.01
Oct 5 +$27.05 +$ 35.87
* 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 and pork carcass
composite values with their respective year-ago prices. The figures
are in percentages of the same-day, year-ago price quotes.
Beef
For Today Choice 82.6
Select 84.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices on Wednesday fell 59 cents
per hundred pounds to $203.58, according to the USDA. Select-grade
prices shed $1.17 per hundred pounds to $197.70. The total load
count was 281. Wholesale pork prices advanced 48 cents to $86.50 a
hundred pounds, based on Omaha, Neb., price quotes.
Write to Ilan Brat at ilan.brat@wsj.com
(END) Dow Jones Newswires
October 07, 2015 17:47 ET (21:47 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Tyson Foods (NYSE:TSN)
Historical Stock Chart
From Jul 2024 to Aug 2024
Tyson Foods (NYSE:TSN)
Historical Stock Chart
From Aug 2023 to Aug 2024