LIVESTOCK HIGHLIGHTS: Top Stories of the Day
June 01 2020 - 05:04PM
Dow Jones News
TOP STORIES
Yum China Inks Beyond Meat Deal -- Market Talk
0845 ET - Yum China says its working with Beyond Meat to bring
its Beyond Burger to mainland China for the first time. The
plant-based patties will roll out on a limited-time basis at select
KFC, Pizza Hut and Taco Bell locations on June 3. Beyond Meat is
now also selling a "plant-based minced beef" at Starbucks stores in
China. Plant-based producers are increasingly eyeing expansion
through China. Beyond Meat up 3% pre-market.
(heather.haddon@wsj.com; @heatherhaddon)
Decline in Food Exports to China Contribute to 30% Slide --
Market Talk
13:04 ET - Exports coming from the US fell 30% in April, the
biggest one-month decline for US exports since 2002, according to
Panjiva, the supply-chain research unit of S&P Global Market
Intelligence. While the main factor in this decline was a 71%
decrease in auto shipments from the US, exports of grain and meat
products to China also contributed to April's decline, Panjiva
says, noting food exports overall dropped 5.3%. "The slide would
suggest that Chinese plans to boost commodities purchasing under
the phase 1 trade deal between the two countries has yet to have a
significant effect," the firm says. Freshly renewed tensions
between the US and China have grains traders uneasy about the
future of January's trade deal. (kirk.maltais@wsj.com;
@kirkmaltais)
STORIES OF INTEREST
Nestlé Loses Fight With Impossible Over Meatless Burger
Branding
Nestlé SA must stop branding its plant-based burger "Incredible"
after a European court ruled the language infringed on Impossible
Foods Inc.'s trademarks and could confuse consumers.
The order by the District Court of The Hague in the Netherlands
means Nestlé has to change the name of its Garden Gourmet
Incredible Burger throughout the European Union. Nestlé said it
would rebrand the product as Sensational across Europe, while also
appealing the decision.
Grains Trade Lower as US-China Tensions Keep Rising -- Market
Talk
08:47 ET - Grains futures on the CBOT Monday are down
pre-market, with traders spooked by what appears to be a ratcheting
up of tensions between the US and China. Although President Trump
did not address any changes to the Phase One trade deal signed in
January in his speech Friday, Bloomberg reports this morning that
China has ordered its state grain-buying companies to halt
purchasing US exports of grains and meat. "This puts Phase 1 deal
in doubt and I can't imagine it will be taken well by the US, so
look for a firm political response when the administration wakes
up," says Richard Buttenshaw of Marex Spectron. Overnight, corn on
the CBOT fell 1.6%, soybeans fell 0.7%, and wheat fell 1.3%.
(kirk.maltais@wsj.com; @kirkmaltais)
FUTURES MARKETS
Livestock Futures Down On US/China Trade Jitters -- Market
Talk
15:40 ET - Livestock futures on the CME finish lower, with live
cattle futures off 0.6% to 98.975 cents per pound, while lean hog
futures lose 3.3% to 55.15 cents per pound. For hogs, today's
session makes it 7.2% that hog prices have fallen in the past four
trading sessions--coinciding with an increase in tensions between
the US and China as well as expectations for higher slaughter rates
and production in the coming weeks. (kirk.maltais@wsj.com;
@kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Jun 1
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 1 +$ 94.19 +$ 40.23
May 29 +$102.28 +$ 54.66
May 28 +$102.96 +$ 57.26
* 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 152.8
(Percent of Year-Ago) Select 152.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday fell $22.19 per
hundred pounds, to $341.15, according to the USDA. Select-grade
prices fell $23.24 per hundred pounds, to $316.83. The total load
count was 166. Wholesale pork prices fell $6.71, to $80.45 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 01, 2020 16:49 ET (20:49 GMT)
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