LIVESTOCK HIGHLIGHTS: Top Stories of the Day
What Would It Take to Sell Sanderson Farms? -- Market Talk
1249 ET - Would Sanderson Farms CEO, chairman and namesake Joe
Sanderson hold out for $200 per share for the third-largest US
chicken company? JPMorgan analysts think it's possible, after the
WSJ on Monday reported that Sanderson was considering a sale and
had hired advisers. JPM says that rising labor, transportation and
supply costs mean that Mr. Sanderson's favorite part of the
business -- building new chicken plants -- for now is tough to do,
and at 73, JPM thinks he may be more willing to sell. Mr. Sanderson
owns about 3.7% of Sanderson Farms' shares, according to Credit
Suisse. Share rise 10% to $183.42. (firstname.lastname@example.org;
STORIES OF INTEREST
McDonald's Introduces Customer-Loyalty Program
McDonald's Corp. said it is rolling out a loyalty program
nationally next month, the latest restaurant chain to invest in
rewards for repeat customers.
The program's introduction on July 8 comes after the fast-food
giant tested it in some U.S. markets. Users will receive points on
qualifying purchases that can be traded for items like hash browns,
McNuggets, a large frappe or a McChicken sandwich, the company said
UK Faces Food Shortages Amid Brexit Truck-Driver Exodus --
1211 GMT - The U.K. faces potential food shortages and delivery
delays amid an exodus of lorry drivers following the country's EU
exit, a logistics expert says. The U.K. has a shortfall of around
70,000 drivers that could trigger delays, empty shelves and higher
prices, parcel-delivery comparison website ParcelHero says. "The
reason is all too obvious. Our analysis of government figures last
October showed thousands of EU drivers and warehouse operatives
fleeing the U.K. to avoid Brexit regulations," ParcelHero's David
Jinks says. "It's high time the U.K. government worked with the EU
to clear up issues around customs delays and charges, Northern
Ireland deliveries and increased transport costs. That means
revisiting some of the terms of the fudged, last-minute UK-EU
Brexit agreement." (email@example.com)
Wheat Drops as Rainy Forecast Offsets Crop Quality Concerns
Wheat for September delivery fell 1.5% to $6.55 a bushel on the
Chicago Board of Trade Tuesday following USDA reports of a decline
in spring wheat quality set aside in anticipation of more rain this
Soybeans for November delivery fell 1.3% to 13.02 1/4 a
Corn for July delivery rose 0.1% to $6.59 3/4 a bushel.
Cattle Futures Close Higher on Grain Weakness -- Market Talk
1456 ET - Live cattle futures led livestock futures on the CME
higher Tuesday -- with the most-active contract closing up 1.8% to
$1.23175 per pound. For the month, cattle futures are up 5.8%, with
supply prospects tightening. "Live cattle futures are... sharply
higher as traders sense that packers may be starting to lose some
of the leverage they had on feeders as supply numbers draw closer
to packer capacity levels," says Arlan Suderman of StoneX.
Meanwhile, lean hog futures closed higher today, the first time
they've done so in nearly a week. The most-active contract closed
up 0.4% to $1.07525 per pound. (firstname.lastname@example.org;
Estimated U.S. Pork Packer Margin Index - Jun 22
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations.
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jun 22 -$ 61.66 +$ 74.86
Jun 21 -$ 33.58 +$103.03
Jun 18 -$ 37.39 +$103.16
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 147.7
(Percent of Year-Ago) Select 137.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell $5.45 per
hundred pounds, to $315.75, according to the USDA. Select-grade
prices fell $1.71 per hundred pounds, to $279.75. The total load
count was 108. Wholesale pork prices fell $13.10, to $105.89 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 22, 2021 17:20 ET (21:20 GMT)
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