LIVESTOCK HIGHLIGHTS: Top Stories of the Day
August 04 2020 - 5:47PM
Dow Jones News
TOP STORIES
Beyond Meat Reports Stronger Demand As Pandemic Inspires Food
Stockpiling
Beyond Meat Inc. said consumers scooped up its alternative-meat
products in the second quarter from retail stores amid
coronavirus-inspired food stockpiling.
The plant-based meat company reported revenue of $113.3 million
for its second quarter that ended June 27, up 69% compared with
last year. Analysts polled by FactSet expected $99.2 million in
revenue.
Sales from groceries and other shops roughly tripled
year-over-year in the U.S. to $90 million but dropped 61% to $6.5
million in the company's business serving restaurants and other
outlets.
Beyond Meat Says It's Narrowing Price Gap with Beef -- Market
Talk
16:57 ET - Covid-19 is helping Beyond Meat narrow the price gap
between its pea protein-based patties and the kind made from cattle
flesh. Meatpacking-plant slowdowns have constrained beef supplies
and pushed up prices in grocery stores, while Beyond in June began
selling a value pack of patties the company says cost about 20%
more than beef versions. The company says its patties used to cost
about twice as much as beef burgers. Beyond's long-term goal has
been to eventually undercut the price of at least one major meat
product. Shares fall 1.6%. (jacob.bunge@wsj.com; @jacobbunge)
STORIES OF INTEREST
Weaker Global Dairy Auction Challenges Forecasts -- Market
Talk
2051 GMT - Global dairy prices need to stabilize after their
sharp fall in the latest auction to support ASB's forecast for New
Zealand dairy farmer incomes in the 2020-21 production year, the
bank says. Whole-milk powder prices fell 7.5% from the previous
auction two weeks ago. ASB recently raised its forecast for milk
exporter Fonterra's 2020-21 payment to dairy farmers to NZ$6.75
kg/milk solids from NZ$6.50. "We had been factoring in some
retrenchment of the large jump in prices that we saw in July," says
ASB. "Prices now need to stabilise around the current levels to
support our milk price forecast." Fonterra's own forecast for
2020-21 is a range of NZ$5.90 to NZ$6.90.
(stephen.wright@wsj.com)
Farm Bankruptcies Slow, Slightly -- Market Talk
1413 ET - US farm bankruptcies are rising at a slightly slower
pace, though agricultural economists aren't necessarily cheering.
The American Farm Bureau Federation says that over the first six
months of the year, the pace of new filings declined 4% versus the
first half of 2019 -- but the trade group notes that shifting the
bankruptcy process online likely contributed to fewer filings. The
group says government aid has helped some farmers stave off fiscal
collapse, and calls for more. (jacob.bunge@wsj.com;
@jacobbunge)
Family Farm Bankruptcies Rise 8% -- Market Talk
14:18 ET - Family farms that declared bankruptcy under Chapter
12 in 1H are up 8% from the same timeframe last year, says the
American Farm Bureau Federation. Total filings of farm bankruptcies
are down 10 cases to 284 filings in 1H, but family farms make up a
bigger portion of those cases. Additionally, bankruptcies reported
in the Midwest were up 23% for 1H, according to the AFBF. The
implementation of the Cares Act has helped mitigate Chapter 12
filings over the past three months, says John Newton of the AFBF,
but with the stimulus expiring, that effect is expected to
dissipate. (kirk.maltais@wsj.com; @kirkmaltais)
FUTURES MARKETS
Cattle Futures Drop After Five Consecutive Higher Sessions --
Market Talk
15:44 ET - After rising for five straight trading sessions,
live-cattle futures on the CME fall 0.7% at $1.07475 a pound. It's
the highest cattle futures have traded at since early March. Hog
futures, meanwhile, finish trading up 1.3% to 49.025c, making up
some ground after falling 2.5% to start the week yesterday. "Hog
futures have been under pressure as slaughter numbers continue to
rise and demand is not following at an equal volume," Karl Setzer
of AgriVisor says. "The sheer number of hogs in the US is weighing
on the complex." (kirk.maltais@wsj.com, @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index
Due to Packer submission problems at USDA the release of this
report will be delayed.
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 95.1
(Percent of Year-Ago) Select 99.4
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell 42 cents per
hundred pounds, to $204.24, according to the USDA. Select-grade
prices rose 5 cents per hundred pounds, to $190.45. The total load
count was 160. Wholesale pork prices fell $1.24, to $64.87 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
August 04, 2020 17:32 ET (21:32 GMT)
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