LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Zoetis Sees Cattle Medication Challenges -- Market Talk
09:55 ET - Zoetis expects sales for its livestock products
related to cattle to remain challenged for the next six to 12
months due to disruptions in meatpacking amid the Covid-19
pandemic, CEO Kristin Peck says. The company makes vaccines and
medication for livestock and pets. Poultry processing hasn't seen
much disruption due to its quick adjustment, she says. But "it is
harder for swine and for beef to adjust," as it would take longer
to change their supply chains, Peck tells WSJ. In terms of M&A,
Zoetis continues to aim for opportunities in diagnostics devices
for animals, Peck says. (firstname.lastname@example.org; @depsebastian)
China Trade Rides a Wave in July After Coronavirus Restrictions
China's exports picked up momentum in July for the second
straight month, as global demand recovered with the easing of
Underpinned by strong shipments of protective gear for the
pandemic and electronic products to fulfill work-from-home demand,
July's 7.2% increase from a year earlier was the fastest so far in
2020, according to data released by the General Administration of
Customs on Friday. It beat June's 0.5% growth, in addition to a
0.1% increase expected by economists polled by The Wall Street
"After turning positive in June, July's export data showed an
overall improvement in global demand," said Iris Pang, an economist
with ING Bank in Hong Kong.
STORIES OF INTEREST
Domino's Pizza to Serve Up 1H Lockdown Boost -- Market Talk
1436 GMT - Domino's Pizza Group is likely to report a boost from
lock-downs as people eat more at home during the pandemic, though
that may not last as restaurants re-open, says Numis Securities
ahead of the takeaway delivery group's first-half results Tuesday.
Numis says the group has been one of the key beneficiaries of
lock-down and its shares are up 7% in the year to date, though
virus-related cost pressures are likely to weigh on 1H earnings.
"There will be questions on current trading, given the increased
competition from other platforms in recent weeks as restaurants
re-open," says analyst Richard Stuber. (email@example.com)
Hogs Rise Ahead of Next Week's US-China Trade Meet -- Market
15:28 ET - Lean hog futures on the CME moderated their gains,
closing up 3.6% at 50.975 cents per pound -- the highest close
since late July. Next weekend, a meeting between the US and Chinese
delegations to discuss the outcome of January's phase one trade
agreement is taking place. "China has been buying US goods, but
volumes are falling short of expectations," says Karl Setzer of
AgriVisor. Whether or not these talks will impact livestock futures
depends on if any actionable news comes out of them. Meanwhile,
live cattle futures finished down 0.5% at $1.0645 per pound.
Estimated U.S. Pork Packer Margin Index - Aug 7
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Aug 7 +$ 66.54 +$ 20.82
Aug 6 +$ 61.68 +$ 17.68
Aug 5 +$ 55.77 +$ 10.18
* 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 94.7
(Percent of Year-Ago) Select 100.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday rose 81 cents per
hundred pounds, to $205.47, according to the USDA. Select-grade
prices rose 74 cents per hundred pounds, to $192.75. The total load
count was 116. Wholesale pork prices rose $1.46, to $71.42 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
August 07, 2020 17:35 ET (21:35 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.