TOP STORIES

Meatpacking Industry Faces Overhaul Push in Washington

The American meatpacking industry faces stricter oversight in Washington, as lawmakers and regulators push an overhaul of the $213 billion sector following complaints about meat companies' alleged influence over markets and farmers.

The U.S. Department of Agriculture is crafting new rules that would change how companies such as Tyson Foods Inc. and Pilgrim's Pride Corp. pay chicken farmers, while making it easier for farmers to pursue disputes against meatpackers, the agency said this month. On Capitol Hill, Republican and Democratic lawmakers have proposed legislation that would require beef processors like Cargill Inc. and JBS USA Holdings Inc. to buy more cattle on open markets, and set minimum regional prices.

Chicken Producer Sanderson Farms Explores Sale, Sources Say

Poultry giant Sanderson Farms Inc. is exploring a sale, according to people familiar with the matter, as demand for chicken products rises.

Sanderson Farms has tapped Centerview Partners for advice on the potential sale and has attracted interest from suitors including agricultural investment firm Continental Grain Co., which owns a smaller chicken processor, the people said. The process may not result in a sale.

STORIES OF INTEREST

Luby's Selling Luby's Cafeteria Business to Calvin Gin Affiliate

Luby's Inc. said it is selling its Luby's Cafeteria restaurant business to a newly formed affiliate of Calvin Gin.

The purchase by the Gin affiliate, to be renamed Luby's Restaurants Corp. following closing of the transaction, will include 32 of the existing locations of Luby's restaurants, all in Texas, and ownership of the Luby's Cafeteria brand.

Cuisine Solutions Recalls Just Egg 'Bites' Due to Incorrect Ingredient

Cuisine Solutions Inc. is voluntarily recalling some "bites" products under the plant-based Just Egg brand because a limited number of packages may contain an incorrect sealed pouch containing whole-egg and milk products.

The interior plastic pouches are properly labeled to distinguish the products, the company said.

FUTURES MARKETS

Hog Futures Fall for 4th Straight Session -- Market Talk

15:45 ET - Lean-hog futures on the CME fell for the fourth straight session, closing down 1.5% to $1.0705 a pound. Weakness in Chinese hog prices has put pressure on US futures, says Robert Yawger of Mizuho Securities USA. "Relative weakness in Chinese demand for US Lean Hogs has crushed the US market in recent days," Yawger says, adding that live-hog futures on the Dalian Commodity Exchange have traded lower for eight weeks in a row. Live-cattle futures finished down 0.4% to $1.21025. (kirk.maltais@wsj.com, @kirkmaltais)

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Jun 21 
 
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 
 
Jun 21       -$ 33.58            +$103.03 
Jun 18       -$ 37.39            +$103.16 
Jun 17       -$ 22.25            +$112.53 
 
* 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  150.4 
      (Percent of Year-Ago)      Select  137.9 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Monday fell $2.08 per hundred pounds, to $321.20, according to the USDA. Select-grade prices fell $2.15 per hundred pounds, to $281.46. The total load count was 90. Wholesale pork prices fell 6 cents, to $118.99 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

June 21, 2021 17:40 ET (21:40 GMT)

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