LIVESTOCK HIGHLIGHTS: Top Stories of the Day
WH Group's China Business Could Offset U.S. Weakness -- Market
0655 GMT - WH Group's share-price slide since March likely
reflected concerns over its U.S. business, Nomura says. It
maintains a buy call but trims the target price to HK$10.10 from
HK$11.40 to factor in greater-than-expected Covid-19 effects on the
pork company's U.S. operations. However, the brokerage believes
WH's U.S. business is set for gradual recovery in 2H and strong
momentum in its China business could offset weakness in the U.S. WH
shares slump 7.6% to HK$6.66 after its 2Q results missed market
Brinker International Swings to 4Q Loss As Pandemic Hurts
Brinker International Inc. swung to a loss for the fiscal fourth
quarter as some dining rooms were still closed and people dined out
less due to the Covid-19 pandemic.
For the quarter ended June 24, the parent of Chili's and
Maggiano's restaurants on Wednesday posted a net loss of $49.2
million, or $1.20 a share, compared with a profit of $46.7 million,
or $1.22 a share, in the comparable quarter last year.
STORIES OF INTEREST
Performance Food Books $48.8M Increase in 4Q Bad Debt Expense --
10:28 ET - Performance Food Group's bad-debt expense rose $48.8M
in 4Q due to Covid-19, Finance Chief James Hope says, noting that
many of the company's customers are still paying on schedule. The
company distributes products to restaurants. Its operating expenses
rose 44.2% to $864.7M due to acquisitions, an increase in personnel
expenses and the bad-debt expense. "We continue to focus on
managing our operating expense to match demand," Hope says on a
call with analysts. (email@example.com; @depsebastian)
Lineage Logistics On A Cold Storage Buying Binge -- Market
10:20 ET - Cold-storage provider Lineage Logistics is scooping
up warehouses across the US, where strong grocery sales during the
coronavirus pandemic are driving up demand for
temperature-controlled space. Over the past 15 or so months the
company added 24 locations through 10 acquisitions valued at $500M
in total. The deal spree began last spring and concluded with last
month's acquisition of Southern Cold Storage. In July Lineage also
entered the Canadian market with an agreement to acquire
Toronto-based Ontario Refrigerated Services Inc.
Hog Futures Pare Losses -- Market Talk
15:29 ET - Lean hog futures on the CME dropped another 0.4%
Wednesday, closing at 51.6 cents per pound. However, this is a
pared-down loss from earlier today, when hog futures were down to
as low as 50.55 cents per pound. Hog futures may have found a
short-term low, says Michael Seery of Seery Futures. "Hog market
prices are very cheap as the risk/reward would be in your favor to
go long," says Seery. Meanwhile, live cattle futures rose 1.2% to
close at $1.09575 per pound. (firstname.lastname@example.org;
Estimated U.S. Pork Packer Margin Index - Aug 12
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Aug 12 +$ 67.77 +$ 20.45
Aug 11 +$ 65.15 +$ 17.27
Aug 10 +$ 62.93 +$ 17.42
* 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 92.4
(Percent of Year-Ago) Select 97.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose $1.01 per
hundred pounds, to $209.09, according to the USDA. Select-grade
prices rose 97 cents per hundred pounds, to $195.99. The total load
count was 182. Wholesale pork prices rose $1.48, to $71.25 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
August 12, 2020 17:49 ET (21:49 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.