TOP STORIES

Agribusiness Trade Initiative Moves Closer to Launch -- Market Talk

1404 ET - An agribusines industry initiative aimed at modernizing global trade operations moves closer to a launch of its platform later this year by incorporating as a legal entity in Geneva as Covantis SA. Archer Daniels, Bunge, Cargill and Louis Dreyfus launched the initiative in 2018 and were later joined by Glencore and Cofco. Covantis plans to use emerging digital technologies such as blockchain and artificial-intelligence to automate transactions, with an initial focus on grains and oilseeds post-trade execution processes. Petya Sechanova, an 11-year Cargill veteran, will serve as Covantis' first CEO. (colin.kellaher@wsj.com)

STORIES OF INTEREST

Virus Generates 'Unprecedented' Demand for Food -- Market Talk

11:43 ET - The numbers quantifying the coronavirus-fueled barrage in food shopping are starting to emerge. Campbell Soup saw retail sales jump 57% over the four weeks that ended March 22, research firm IRI says, while General Mills saw a 51% gain and Conagra's sales jumped 47%. Spice-maker McCormick's gain clocked in at 39%, while Kraft Heinz saw retail sales rise 37% and snack company Mondelez experienced a 31% increase. "In an environment of modest growth in the food industry, this surge in sales is unprecedented," Stifel says. The question is how long with the enhanced demand last. "Nobody has a crystal ball," Conagra CEO Sean Connolly said earlier during a call about the company's latest results. (micah.maidenberg@wsj.com; @MicahMaidenberg)

Conagra: New Shoppers Trying Products Amid Virus Stockpiling -- Market Talk

10:32 ET - Conagra says retail-level sales for the four-week stretch that ended March 22 jumped 47% compared with the a year earlier. The surge was driven by consumers in the US, who have been stockpiling food to cook at home as the coronavirus ripples through the economy. The food maker saw major jumps in demand for the weeks that ended March 15 and 22, according to an investor presentation. CEO Sean Connolly tells analysts on a call about quarterly results that heightened shopping activity has pushed consumers to try out its products, creating what he says is a new, long-term opportunity for its portfolio. (micah.maidenberg@wsj.com; @MicahMaidenberg)

Pandemic Could Prompt Larger Grain Reserves in Food Importers -- Market Talk

1013 GMT - The pandemic could lead to long-lasting changes in the grain market, says Michael Magdovitz, an analyst at Rabobank. Countries that rely on imported grains to feed their populations may build up larger strategic food reserves and become less reliant on a steady stream of imports. "Countries right now are showing that they want to import sufficient stockpiles in case there's a lockdown," Magdovitz says. President Abdel Fattah Al Sisi of Egypt, the world's biggest wheat importer, has told officials to increase the size of the country's food reserves. Saudi Arabia bought 1.2 million tons of barley for animal feed in a tender last week. (joe.wallace@wsj.com)

FUTURES MARKETS

Cattle Futures Reverse Course and Close Limit Up -- Market Talk

15:51 ET - Livestock futures on the CBOT finished out the day on a high note following a weak open. The June cattle contract ended up 3.4%, or 3-cents per pound, at 92.075 cents. It's a low close for cattle futures, but still higher than the contracts' recent levels. Meanwhile, hog futures posted a minor rebound, rising 0.9% to 60.325 cents per pound after falling for three consecutive days and shedding 19% in the past month. (kirk.maltais@wsj.com, @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Mar 31 
 
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 
 
Mar 31       +$ 13.95            +$  5.55 
Mar 30       +$ 23.07            +$ 17.77 
Mar 27       +$ 25.28            +$ 23.61 
Mar 26       +$ 31.76            +$ 31.78 
 
* 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  107.2 
      (Percent of Year-Ago)     Select  104.4 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Tuesday fell $7.82 per hundred pounds, to $243.15, according to the USDA. Select-grade prices fell $9.18 per hundred pounds, to $228.96. The total load count was 104. Wholesale pork prices fell $5.67, to $65.04 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

March 31, 2020 17:33 ET (21:33 GMT)

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