TOP STORIES

 

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. (jacob.bunge@wsj.com; @jacobbunge)

 

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 Tuesday.

 

UK Faces Food Shortages Amid Brexit Truck-Driver Exodus -- Market Talk

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." (philip.waller@wsj.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 week.

Soybeans for November delivery fell 1.3% to 13.02 1/4 a bushel.

Corn for July delivery rose 0.1% to $6.59 3/4 a bushel.

 

FUTURES MARKETS

 

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. (kirk.maltais@wsj.com; @kirkmaltais)

 

CASH MARKETS

 
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 - 
                             integrated operations 
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. 
 
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  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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