LIVESTOCK HIGHLIGHTS: Top Stories of the Day
April 15 2020 - 5:50PM
Dow Jones News
TOP STORIES
Smithfield Foods to Temporarily Close Two Additional Plants in
US
Smithfield Foods Inc. on Wednesday said it will temporarily
shutter two additional facilities later this week, one in Wisconsin
and one in Missouri, due to circumstances arising from the Covid-19
pandemic.
The company said it would close its Martin City, Mo., plant
indefinitely. That facility receives raw materials from
Smithfield's Sioux Falls, S.D., facility, which is also closed
indefinitely.
The company's dry sausage and bacon plant in Cudahy, Wis., will
be closed for two weeks, it said.
Danone's Organic Growth Is Expected to Be Hit by Mizone's Loss
-- Market Talk
1156 GMT - Danone's organic growth is expected to be hit by
lower sales mainly in China's water business unit, Equita says. The
Mizone brand, the leading Chinese vitamin drink brand, is forecast
to suffer sales loss due to the lockdown, "as it is a vitamin water
mainly consumed on the go or during sports," according to the bank.
The French food company may also slightly revise its current
organic sales growth guidance, analysts at Equita say. The bank
cuts its like-for-like sales estimate for the company from 3% to 2%
for 2020. Danone is scheduled to release first-quarter results on
Tuesday. (giulia.petroni@wsj.com)
STORIES OF INTEREST
Ocado Gets Grocery Home-Delivery Boost; FTSE 100 Falls -- Market
Talk
1631 GMT - Ocado is among a handful of FTSE 100 risers, up 3.9%
as the blue-chip index falls 3.3% overall, as the UK online grocer
benefits from increased demand for home deliveries in the
coronavirus crisis. Ocado has been very popular in recent weeks due
to social-distancing policies, CMC Markets says. "There is chatter
the UK will extend its lockdown and should that be the case, Ocado
is likely to remain high on traders' shopping lists," CMC's David
Madden says. (philip.waller@wsj.com)
Leong Hup Will Likely See Persistent Weak Poultry Demand --
Market Talk
0815 GMT - Leong Hup International will likely experience
prolonged weak demand for its poultry products, even after
restrictions in Southeast Asia countries are eased, Hong Leong
Investment Bank says. This is because social distancing practices
will likely continue even after people start moving around more,
resulting in persistent weak demand from institutional customers,
the brokerage says. Hong Leong says lockdowns in the region have
hurt poultry demand, particularly day-old chicks and broilers. Hong
Leong downgrades Leong Hup to hold from buy and cuts its target
price to MYR0.56 from MYR0.92. Leong Hup's shares fall 0.9% to
MYR0.57. (chester.tay@wsj.com)
Soybeans Get Boost From High Crush Figures -- Market Talk
1336 ET - Soy futures on the CBOT got a lift from figures
showing a new record for US soybean crush. According to a report
from the National Oilseed Processors Association, 181.4 million
bushels of beans were crushed in March -- a new monthly record.
It's a 6.7% year-over-year increase, NOPA says. Demand in both
soyoil and soymeal appear to be stronger over last year, according
to NOPA data. As a result, CBOT soybean futures turned positive, up
0.2%. Soymeal futures are up 2%, and soyoil futures pares its
losses to down 0.6%. (kirk.maltais@wsj.com; @kirkmaltais)
FUTURES MARKETS
Livestock Futures Reverse Earlier Losses -- Market Talk
15:36 ET - After starting the day lower, livestock futures on
the CME turn the corner and finish in the black. Live-cattle
futures on the CME gain 1.2% at 84.825 cents a pound, while
lean-hog futures rise 1.5% at 44.625c. China is slowly reopening
its economy after pausing to deal with coronavirus for most of the
year, which may prove to be a boon for US meat exports. Meanwhile,
US livestock traders are hoping businesses reopening from
quarantine will unleash pent-up demand for meat.
(kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Apr 15
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Apr 15 +$ 31.35 -$ 22.74
Apr 14 +$ 32.77 -$ 19.88
Apr 13 +$ 27.82 -$ 20.09
* 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 99.3
(Percent of Year-Ago) Select 100.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose $3.86 per
hundred pounds, to $230.53, according to the USDA. Select-grade
prices rose $6.45 per hundred pounds, to $222.22. The total load
count was 112. Wholesale pork prices fell $1.33, to $51.16 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
April 15, 2020 17:35 ET (21:35 GMT)
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