LIVESTOCK HIGHLIGHTS: Top Stories of the Day
July 27 2021 - 5:34PM
Dow Jones News
TOP STORIES
ADM Being Choosy on Deals, CEO Says -- Market Talk
1024 ET - Archer Daniels Midland has been relatively quiet on
the deal front lately, and CEO Juan Luciano says it's because the
agricultural company's being selective as valuations for crop
processing and food ingredient companies remain very high. "It
needs to be a perfect fit into our portfolio, and the perfect
combination of things," Luciano says. ADM this week announced a
deal for European soy ingredient developer Sojaprotein, which
Luciano says ticks those boxes as far as fast-growing demand for
plant-based proteins, geographic expansion, and new production
capacity. Terms of that deal weren't disclosed.
(jacob.bunge@wsj.com; @jacobbunge)
STORIES OF INTEREST
McDonald's Appoints Its First Global Chief Customer Officer
McDonald's Corp. named company veteran Manu Steijaert as its
first global chief customer officer, who will lead a new
customer-experience team.
The team will combine operations in data analytics, digital
customer engagement, marketing, restaurant development and
restaurant solutions, a segment that includes areas such as
drive-through services and how food is cooked, McDonald's said.
US Crop Ratings Expected to Trend Lower -- Market Talk
1251 ET - Crop ratings, which trended down in Monday's crop
progress report from the USDA, are expected to turn down even
further in next week's report. "The weather this week will be hot
and dry for much of the Midwest so traders will be expecting
another decline in ratings next Monday if the weather patterns
perform as currently forecast," says Craig Turner of Daniels
Trading. In the Northern Plains, isolated showers are expected to
continue throughout the week--albeit no significant showers are
expected, according to DTN. Grains futures are mixed Tuesday, with
corn futures unchanged, soybeans up 0.2%, and wheat inching ahead
0.1%. (kirk.maltais@wsj.com; @kirkmaltais)
US Ethanol Inventories Pile Up -- Market Talk
1228 ET - Inventories of ethanol in the US are expected to again
climb this week, according to analysts surveyed by WSJ this week.
They predict ethanol inventories up to as much as 23.5M
barrels--the highest stocks have been since mid-February. This
growth comes as Archer Daniels Midland sees vehicle miles traveled
this summer as back to pre-pandemic levels, and in some places
surpassing that level. Corn futures are down 0.2% Tuesday, this
after trading up 1.3% pre-market. (kirk.maltais@wsj.com;
@kirkmaltais)
ADM Aims to Expand Carbon-Capture Efforts -- Market Talk
0958 ET - Archer Daniels Midland says a four-year carbon capture
effort situated around its Decatur, Ill. crop-processing facilities
is paying off, and can be applied to more of its operations in the
future. Since 2017, ADM says that about 20,000 feet of wells have
sequestered more than 3 million metric tons of carbon dioxide
underground, and CEO Juan Luciano says that expanding such carbon
capture operations will let ADM market more of its products as "low
carbon intensity," while lowering the carbon scores of its plants.
"This is going to be a growing part of our operations, for sure,"
Luciano says. (jacob.bunge@wsj.com; @jacobbunge)
FUTURES MARKETS
Livestock Futures Finish Lower -- Market Talk
1517 ET - Livestock futures finished trading down, with live
cattle futures down 0.6% to $1.28425 per pound and lean hog futures
down 0.6% to 92.525 cents per pound. This is a departure from
today's open, and for cattle it comes amid mixed signals for beef
demand. "Slaughter numbers for the month of June were 103% of a
year ago," says Karl Setzer of AgriVisor. "June beef production was
also a fifteen-year high. Even with these increases, yearly beef
production is only up 1% on the year as cattle weights are down."
Setzer adds that years with heavy culling of supplies often see
similar conditions. (kirk.maltais@wsj.com; @kirkmaltais)
(END) Dow Jones Newswires
July 27, 2021 17:25 ET (21:25 GMT)
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