Tyson Foods Bans Use of Feed Ingredient Ractopamine in Hogs It Buys
Tyson Foods Inc. (TSN) on Thursday said its Tyson Fresh Meats unit will prohibit the use of the feed ingredient ractopamine in the hogs it buys from farmers in a bid to meet rising global demand for U.S. pork.
The Springdale, Ark., meat giant said that while the U.S. Food and Drug Administration has approved ractopamine, which helps increase the amount of lean meat in hogs, some countries, such as China, prohibit the import of pork from hogs that have been given the product.
Higher Meat Prices Could Pressure Margins At Kraft Heinz -- Market Talk
11:51 ET - Kraft Heinz may face margin pressure as Chinese buyers ramp up beef, chicken and pork imports and protein prices increase, Wells Fargo says. "Meats comprise one of its 'big four' inputs and its history of passing through cost-driven pricing has been mixed," analysts say of Kraft Heinz. Meat-related categories--the company's Oscar Mayer unit makes bacon, sausage, cold cuts and more--make up about 20% of Kraft Heinz's retail-level sales, according to Wells Fargo research. China has been importing more proteins after pig herds in the country were culled due to the African swine fever outbreak. (firstname.lastname@example.org; @MicahMaidenberg)
U.S. Alert Issued for Certain Beef Products in Connection With Canada Recall
Certain beef products recalled in Canada due to E.coli concerns were available in the U.S., according to an alert from the U.S. Department of Agriculture's Food Safety and Inspection Service.
FSIS mentioned items including certain DeVanco Foods gyros slices and Shop-Rite burgers.
STORIES OF INTEREST
Cargill Reports Explosion at Kansas Beef Plant -- Market Talk
10:19 ET - Cargill reports an explosion at a small, standalone building that's part of its Dodge City, Kan. beef-processing complex, leading the agricultural company to suspend operations Thursday at the plant as "an extra precaution," a spokesman says. Two employees are being treated for burns, and Cargill expects to meet all of its supply commitments to beef buyers. The cattle markets are extra sensitive to any plant mishaps after a big fire hit a Tyson Foods beef complex in August, reducing the amount of US cattle able to be processed by around 5%, and sending cattle futures prices lower. ( email@example.com ; @jacobbunge)
Beyond Meat Feels Competitive Heat -- Market Talk
12:46 ET - Beyond Meat shares slide 4.7% as investors mull the meat alternative makers' prospects versus deep-pocketed competitors in the traditional meat world. Dining and entertainment chain Dave & Buster's says its 130 locations will swap out the Impossible Foods' plant-based burgers for rival versions produced by Lightlife, a subsidiary of Canadian meat giant Maple Leaf Foods. Beyond and Impossible have revolutionized veggie burgers by producing new patties that more closely resemble ground beef, but meat giants like Maple Leaf, Tyson Foods and JBS have rapidly followed, heightening competition in the fast-growing sector. (firstname.lastname@example.org; @jacobbunge)
Hog Stays Lower as Traders 'Numb' to US-China Talks -- Market Talk
15:15 ET - Hog futures on the CME held lower throughout Thursday's session, with traders viewing developments in the US-China trade war with high skepticism, says Steve Wagner of CHS Hedging. "Everyone in this industry is numb to that drum beat," says Wagner, noting that hog futures have stayed in a tight trading range for months. Wagner is also skeptical that tomorrow's export sales report from the USDA will yield enough good news to dramatically change the direction of the hog contract, and instead the seasonal jump in pork consumption around the holidays may do that. Hog futures finished down 3.5% at 68.15 cents per pound. Meanwhile, cattle futures rose 0.4% to $1.14375 per pound -- levels unseen since early August. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Oct 17
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Oct 17 +$ 29.26 +$ 32.50
Oct 16 +$ 29.99 +$ 35.06
Oct 15 +$ 32.34 +$ 36.31
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 106.6
(Percent of Year-Ago) Select 100.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Thursday fell 17 cents per hundred pounds, to $218.11, according to the USDA. Select-grade prices rose $1.23 per hundred pounds, to $192.60. The total load count was 146. Wholesale pork prices fell $1.19, to $75.52 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 17, 2019 17:23 ET (21:23 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.