Brazil Inflation Outlook Improving After Jump in Meat Prices -- Market Talk
10:43 ET - The outlook for inflation is improving in Brazil as the effects of a recent jump in meat prices begin to have less impact on the price index, according to Banco Fibra economist Cristiano Oliveira. The bank cut its forecast for inflation for this year to 3%, a full point below the central bank's target for 2020 of 4%. The rise in meat prices was the result of strong demand from Asian countries for Brazilian exports of animal protein in the face of an outbreak of African Swine Fever that has decimated Asian pig herds. Certain core and service prices have also risen recently in Brazil, but the increase is partly due to seasonal factors and shouldn't be a cause for concern, Oliveira said. (email@example.com)
Regulators Probe Potential Dean Foods Merger
Federal antitrust regulators are probing a potential deal between a major U.S. dairy cooperative and Dean Foods Co., the bankrupt milk-processing giant, according to officials and people in the industry.
The Justice Department is discussing with farmers and retailers the potential impact of such a deal on milk prices and competition in the dairy business, according to those people.
Texas-based Dean sought bankruptcy protection in November after struggling for years against declining U.S. milk consumption. Dean and Dairy Farmers of America, the largest U.S. dairy cooperative by membership, said in November that they were in deal discussions, which have continued.
STORIES OF INTEREST
Beyond Meat Up 7% as Denny's Launches Beyond Burgers in U.S., Canada
Beyond Meat Inc. (BYND) shares were up 7% at $127.99 after the company said Denny's Corp. (DENN) will now offer the Beyond Burger in more than 1,700 locations across the U.S. and Canada.
Beyond Meat said the move follows a successful launch of the plant-based burger at Los Angeles-area Denny's restaurants.
Village Inn, Bakers Square Restaurant Chains File for Bankruptcy
The operator of the Village Inn and Bakers Square restaurant chains has filed for bankruptcy after years of losses as it faces ongoing pressure from new casual dining brands and larger competitors.
Restaurant operator American Blue Ribbon Holdings LLC filed for chapter 11 protection on Monday in the U.S. Bankruptcy Court in Wilmington, Del. The bankruptcy filing comes after Blue Ribbon said it closed 33 underperforming restaurant locations and laid off about 1,100 employees.
Livestock Futures To Trade With Expanded Limits Tuesday -- Market Talk
15:10 ET - Livestock futures on the CME close limit down -- with both live cattle and hog futures down 3 cents per pound, or down 2.4% and 4.1% respectively. Livestock futures will be allowed to trade in a 4.5-cent range higher of lower on Tuesday. Coronavirus was the primary factor pulling livestock lower, as across commodity markets traders sold -- taking a "risk-off" approach to the market. "Lean hog contracts are bearing the brunt of that disease concern," says Steiner Consulting Group. Meanwhile, Friday's Cattle on Feed report showed a high volume of cattle for the slaughter market, with 12 million head on feed as of Jan. 1. (firstname.lastname@example.org, @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Jan 27
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jan 27 +$ 42.42 +$ 31.87
Jan 24 +$ 44.14 +$ 31.70
Jan 23 +$ 51.47 +$ 34.84
* 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 98.4
(Percent of Year-Ago) Select 99.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday fell 90 cents per hundred pounds, to $213.59, according to the USDA. Select-grade prices fell 20 cents per hundred pounds, to $210.50. The total load count was 104. Wholesale pork prices rose 8 cents, to $76.56 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
January 27, 2020 17:06 ET (22:06 GMT)
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