TOP STORIES

Mondelez Approves $4 Billion Share Buyback Increase, Extends Plan by 3 Years

Mondelez International Inc. said Wednesday that it has extended its share repurchase program by three years and increased its scope by $4 billion.

The Chicago, Illinois-based company said that board approved to increase the scale of the repurchase program by $4 billion, which authorizes the board to repurchase a combined $6 billion in total.

STORIES OF INTEREST

US-China Trade Deal to Stay in Place Under Biden -- Market Talk

09:36 ET - The phase one trade agreement looks to stay in place following the inauguration of President-elect Biden, at least in the short-term. Speaking to the New York Times, Biden says that his administration will not immediately roll back tariffs or alter the terms of the current trade deal between the US and China, adding that the US needs to "regain leverage" to bring to negotiations. As it stands now, China is behind on its promised agricultural purchases, leaving grains traders eyeing how Biden will address this. CBOT corn and soybean futures are down in pre-market trading Wednesday. (kirk.maltais@wsj.com; @kirkmaltais)

US Farm Incomes to Rise to Highest Level in 7 Years -- Market Talk

1138 ET - US farm incomes will surge 43% to the highest level since 2013, according to a US Department of Agriculture forecast. Net farm income will top $119B in 2020, USDA says, as direct government payments double. The payments are projected to soar to a record $46B as the Trump administration provides support to farmers and ranchers dealing with the fallout from the coronavirus pandemic. The payments, which would comprise nearly 40% of farmers' incomes, come as agricultural commodity prices are also rising due to dry weather globally and increased exports to China. Government payments and better prices are helping revive farmers' fortunes following a yearslong downturn in the farm economy that has pushed some out of business. (jesse.newman@wsj.com; @jessenewman13)

Wm. Morrison Supermarkets to Waive Business-Rates Relief in Full

Wm. Morrison Supermarkets PLC said Wednesday that it expects net debt in fiscal 2021 to be higher as higher costs as a result of the pandemic weigh on the company, but that it has decided to pay its business rates for the period.

The British grocer said profits have been significantly hit due to the direct effects of the pandemic on the business. The company pointed to widespread closures of many of its cafes and market street counters in the wake of national lockdowns.

FUTURES MARKETS

Cattle Closes Higher as Cutout Spread Widens -- Market Talk

15:18 ET - Live cattle futures trading on the CME finished 0.7% higher at $1.13925 per pound, making it the third day in a row that cattle futures have risen. The uptick in futures coincides with the elevated spread in choice and select cutout values - suggestive of holiday demand incoming for beef. "The holiday season is usually ready to absorb supplies of higher quality beef, due to consumer tastes and preferences during the 4th quarter," says Steiner Consulting Group. "It appears there has been some late seasonal demand for Prime product this year." Meanwhile, lean hog futures finished down 1.3% to 67.875 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Dec 2 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Dec  2       +$ 42.74            +$ 42.91 
Dec  1       +$ 36.18            +$ 36.51 
Nov 30       +$ 42.12            +$ 42.53 
 
* 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  104.7 
      (Percent of Year-Ago)      Select  105.0 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Wednesday fell $2.51 per hundred pounds, to $240.89, according to the USDA. Select-grade prices fell 13 cents per hundred pounds, to $222.95. The total load count was 123. Wholesale pork prices rose $2.98, to $79.03 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

December 02, 2020 17:25 ET (22:25 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.