LIVESTOCK HIGHLIGHTS: Top Stories of the Day
USDA Data on Livestock Could be Misleading -- Market Talk
12:01 ET - Global supplies of meat will be declining in the
short term, M & R Capital's Scott Shepard tells WSJ,
downplaying the latest Wasde report's prediction of a rise in meat
production as slaughtering plants reopen from coronavirus
shutdowns. Shepard offers a caveat. "US inventory and availability
is peaking now so confusing slaughter with available supply can get
tricky." The report also mentioned cattle are heavier after months
stuck in feedlots, but Shepard says while cows are much fatter than
a year ago, they weigh only five to seven pounds above a historic
average. Live cattle falls 0.3%. (email@example.com;
FDA Rolls Out New Food Safety Plan -- Market Talk
16:03 ET - The FDA unveiled a new food-safety agenda as the
coronavirus pandemic brings never-before-seen challenges for food
regulators, makers and purveyors. The 17-page "blueprint," which
outlines the FDA's approach for the next decade, details the
agency's efforts to use and promote technologies like artificial
intelligence and machine learning to create a digital system in
which food is easier to trace, problems are easier to predict, and
companies and officials respond more quickly to outbreaks. The FDA
says the pandemic, which upended the US food system and delayed the
plan's release, has made its new approach even more urgent,
underscoring the need for capabilities like virtual inspections of
food facilities and education on proper food handling for new
players in food delivery, from the US Postal Service to Uber. (
firstname.lastname@example.org ; @jessenewman13)
STORIES OF INTEREST
El Pollo Loco's Chickenless Pollo Is Now Vegan
El Pollo Loco Inc. said its Chickenless Pollo, a vegetarian
alternative to shredded chicken that launched earlier this year, is
now vegan after being reformulated in a version without egg
Darden Gets Upgrade as J.P. Morgan Applauds Big Changes Amid
Covid-19 -- Barrons.com
Darden Restaurants stock has been hit hard by the pandemic, as
the Olive Garden owner has had to close many of its locations to
dine-in customers as part of local lockdown protocols.
J.P. Morgan, however, argues that the market is too pessimistic
about the shares' prospects.
Analyst John Ivankoe upgraded Darden to Overweight from Neutral
and added $8 to his price target on the stock, to $82. The move
comes following his recent conversations with management, including
with CEO Gene Lee and Chief Financial Officer Rick Cardenas, which
bolstered his confidence that the company is executing well
throughout the crisis.
Hogs Up as Traders Doubt Chinese Pullback From Trading -- Market
15:31 ET - Lean hogs futures on the CME finish up 2.8%, closing
at 51.275 cents per pound. The movement higher is partially related
to a disbelief among grains traders that President Trump's
disinterest in further trade negotiations with China will equate to
lesser grain export purchasing by China. "Even with this news it is
doubtful China will halt trade with the US, but it is possible it
could be scaled back from what is being predicted," says Karl
Setzer of AgriVisor. Cattle futures, meanwhile, finished 0.4% lower
at 99.65 cents per pound. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Jul 13
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jul 13 +$ 76.48 +$ 11.75
Jul 10 +$ 78.37 +$ 15.23
Jul 9 +$ 73.51 +$ 11.60
* 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 95.5
(Percent of Year-Ago) Select 101.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday fell $1.24 per hundred
pounds, to $203.26, according to the USDA. Select-grade prices fell
$2.41 per hundred pounds, to $191.88. The total load count was 119.
Wholesale pork prices fell $1.62, to $67.20 a hundred pounds, based
on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
July 13, 2020 17:19 ET (21:19 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.