WH Group's China Business Could Offset U.S. Weakness -- Market Talk

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 views. (


Brinker International Swings to 4Q Loss As Pandemic Hurts Restaurants

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.




Performance Food Books $48.8M Increase in 4Q Bad Debt Expense -- Market Talk

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. (; @depsebastian)


Lineage Logistics On A Cold Storage Buying Binge -- Market Talk

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. (; @JenSmithWSJ)




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. (; @kirkmaltais)



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 - 
                             integrated operations 
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)

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