TOP STORIES

Argentina to Ban Beef Exports for 30 Days -- Market Talk

12:15 ET - In a bid to tackle Argentina's rising food prices, President Alberto Fernandez announces the country will suspend beef exports for 30 days. Fernandez says the move was necessary to lower domestic beef prices. He says he didn't understand why beef prices continue to rise as domestic consumption had fallen to its lowest level in decades. Argentines are struggling with double-digit inflation fueled by money-printing to cover a large deficit that the government is unable to fund because it can't raise debt on international markets. Ranchers say they will launch a seven-day protest against the beef export ban. (ryan.dube@wsj.com; @duberyan)

Walmart Gets Back to Basics as Grocery Sales Grow -- Heard on the Street

Between competition from Amazon, big-box retailer peers and traditional grocery stores, Walmart has a lot to worry about. Last quarter's results should help ward off at least one fear.

The retailer on Tuesday reported better-than-expected results for the quarter ended April 30, with comparable U.S. sales up 6% compared with the 1.5% growth analysts polled by FactSet had expected, boosted in part by stimulus payments. That growth is especially impressive given that it is being measured against the peak pandemic stockpiling period a year earlier, when comparable sales grew 10.3%. Excluding the effects of some nonrecurring items, earnings per share increased 43% from a year earlier.

STORIES OF INTEREST

Tesco to Rebrand Metro Stores to Express, Superstore Format

Tesco PLC said Tuesday that it will drop the Metro format and rebrand its stores across the U.K. to adapt to its customers' shopping habits.

The British grocer said that the Metro format, originally intended for larger, weekly shopping runs, will be scrapped in favor of its express and superstore categories.

Core-Mark Shares Rise, Performance Group Down After Buyout Offer

Core-Mark Holding Company Inc. shares hit a 52-week high after Performance Food Group Co. offered to buy the company in a stock and cash transaction valuing Core-Mark at $2.5 billion.

Core-Mark shares were up 5% to $44.32 at midday in heavy volume, after going as high as $45.58 earlier in the session. Performance Group shares were down 8% to $47.91.

FUTURES MARKETS

Cattle Closes Higher on Argentina Export Suspension -- Market Talk

1514 ET - Live cattle futures trading on the CME closed up 1.2% to $1.198 per pound, with the most-active contract getting momentum from reports that Argentina had temporarily suspended its beef exports in order to combat inflation. "Argentina has steadily increased its beef exports over the past four years which has been a welcomed source of tax revenue for the government," says Karl Setzer of AgriVisor. "For the first two months of 2021 Argentine beef exports were record sized." Argentina dropping out of the export market is seen as directing more business towards US exports. Meanwhile, lean hog futures closed up 1.8% to $1.11125 per pound. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - May 18 
 
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 
 
May 18       -$ 10.56            +$ 98.46 
May 17       -$ 11.33            +$ 99.47 
May 14       -$ 14.00            +$ 97.00 
 
* 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   74.4 
      (Percent of Year-Ago)      Select   71.4 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Tuesday rose $3.72 per hundred pounds, to $323.34, according to the USDA. Select-grade prices rose $2.16 per hundred pounds, to $299.05. The total load count was 114. Wholesale pork prices fell 47 cents, to $114.20 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

May 18, 2021 17:35 ET (21:35 GMT)

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