LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Elanco/Bayer Animal-Health Union Clears Last Regulatory Hurdle
-- Market Talk
11:30 ET - The US Federal Trade Commission gives its
long-awaited blessing to Elanco Animal Health's $7.6B buy of
Bayer's animal-health business. The FTC nod, which represents the
final antitrust clearance, is contingent on the divestiture of
products with $120M-$140M in revenue, which Elanco has already
agreed to shed. Elanco says the deal remains on track to close at
the beginning of August. Elanco up 2.8% to $24.14.
Restaurant Industry Lobbies for Bailout -- Market Talk
09:18 ET - The National Restaurant Association is asking
Congress to pass a $120B recovery fund, a second round of Paycheck
Protection Program loans and other support as another wave of
coronavirus cases forces closures. The trade group estimates the
restaurant industry is on track to lose $240B by the end of the
year, more than any other industry, according to its analysis.
Government orders to slow the virus's spread have suspended service
at nearly 100,000 restaurants, the group says.
Chipotle to Hire 10,000 Employees as it Adds Drive-Through Lanes
-- 3rd Update
Chipotle Mexican Grill Inc. said it is adding as many as 10,000
employees as it opens more stores with drive-through lanes for
digital orders, another example of how restaurants are adjusting to
changes in customer behavior tied to the Covid-19 pandemic.
Chipotle expects more than 60% of new stores that it opens will
include drive-through lanes, which are strictly for picking up
orders placed in advance online. The company said restaurants with
what it calls "Chipotlanes" require more staff than its traditional
restaurants. Chipotle had 83,000 employees as of the end of last
STORIES OF INTEREST
Microsoft Partners With Land O'Lakes on Agriculture Technology
-- Market Talk
0934 ET - Microsoft and butter maker Land O'Lakes say they are
working together on agriculture technology that would help farmers
act toward ideal growth conditions and lower farm carbon footprint.
Land O'Lakes will move most of its IT infrastructure to Microsoft
Azure, according to the companies. The companies will also work on
helping dairy producers get insights on weather, feed management
and animal health through sensors and third-party applications. The
technology suite will also help farmers predict the carbon benefits
of practices like no-till farming and planting of cover crops.
Tensions With China Back in Focus For Grains -- Market Talk
09:25 ET - President Trump's signing of sanctions against China
to punish it for actions against Hong Kong is ratcheting tensions
between the two nations -- which combined with recent comments by
the President casting doubt that a second phase of a trade
agreement will be reached has grain traders on edge. "Tensions are
high between the US/China and traders will remain nervous that
either Trump or Xi pulls their support from the Phase 1 deal as
political retaliation," says AgResource. However, the USDA
announced this morning that China has purchased 389,000 metric tons
of US soybeans and 132,000 tons of corn for 2020/21 delivery -
which should assuage these concerns, at least temporarily.
Livestock Futures Finish Trading With Gains -- Market Talk
15:36 ET - Livestock futures on the CME end higher Wednesday,
with most-active live cattle futures up 2.5% at $1.013 per
pound--their highest close in over four months. Meanwhile, hog
futures rise 0.5% to 50.15 cents per pound. For cattle, much of the
uptick is attributed to fewer cattle coming onto the slaughter
market, although for now it will still take time for meatpackers to
work through the high amounts of backed-up animal inventory, says
Steiner Consulting. (firstname.lastname@example.org; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Jul 15
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jul 15 +$ 72.91 +$ 14.03
Jul 14 +$ 69.81 +$ 9.68
Jul 13 +$ 76.48 +$ 11.75
* 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 94.3
(Percent of Year-Ago) Select 101.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell 16 cents per
hundred pounds, to $200.76, according to the USDA. Select-grade
prices rose 52 cents per hundred pounds, to $191.37. The total load
count was 151. Wholesale pork prices rose $2.02, to $68.26 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
July 15, 2020 17:26 ET (21:26 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.