LIVESTOCK HIGHLIGHTS: Top Stories of the Day
McDonald's, Chick-fil-A, Popeyes and Other Chains Bite Into the
Fervor for Chicken
The hottest item in the burger business is chicken.
At least 10 major U.S. fast-food chains have introduced
fried-chicken sandwiches in the past three months, or are set to
shortly. Many of those peddling the new poultry items are better
known as hamburger chains, including McDonald's Corp., Shake Shack
Inc. and Jack in the Box Inc.
STORIES OF INTEREST
Steak 'n Shake Taps Adviser for Possible Debt Restructuring --
Steak 'n Shake Inc. is preparing for a possible financial
restructuring and has hired an advisory firm to evaluate options as
the Covid-19 pandemic continues to hit the casual-dining sector
hard, according to people familiar with the matter.
The Indianapolis-based burger-and-milkshake chain hired FTI
Consulting Inc. to advise on a restructuring strategy, the people
said. Steak 'n Shake, owned by entrepreneur Sardar Biglari's
eponymous holding company, has struggled with restrictions on
indoor dining and has a $153 million loan coming due in March, they
Dairy Prices Advance Again in Auction 'Rip-Snorter' -- Market
1631 ET - ASB's assessment of the Global Dairy Trade auction
overnight: Another rip-snorter. Whole milk powder prices lifted
2.2%, skimmed milk powder rose 7.0%, and anhydrous milk fat jumped
17%. Butter prices rose 4.6%, in contrast to market expectations of
a fall, ASB said. "All the indicators continue to suggest demand
for dairy products is likely to hold up well, through to the end of
the season," ASB said. "Solid purchases from China have anchored
price gains at recent auctions, and with the latest Chinese GDP
figures showing a decent lift in GDP, there is little reason to
think that story will change." (email@example.com;
La Nina Seen as Potentially Weakening in Late Winter -- Market
12:33 ET - The La Nina climate condition seen throughout this
winter is expected to continue into the spring - but how strong it
is could have notable effects on winter wheat crops and planting
conditions for spring row crops. In a virtual forum Tuesday,
meteorologists with DTN forecast that the current La Nina climate
has so far kept winter warm in most areas of the country, reducing
national heating demand and limiting snowfall. However, if La Nina
weakens in the coming months, then winter wheat crops could be
exposed to a round of heavier snowfall - and temperatures on the
colder side heading into the spring planting season. Grain futures
are trading lower on the CBOT Tuesday. (firstname.lastname@example.org;
Soybeans Drop as Profit Taking Extends
Soybeans for March delivery fell 2.2% to $13.85 3/4 a bushel, on
the Chicago Board of Trade Tuesday, with managed money funds
extending their selling of grains futures for a second straight
Corn for March delivery fell 1% to $5.26 a bushel.
Wheat for March delivery fell 0.5% to $6.72 1/4 a bushel.
Lower Feedlot Placement Lifts Cattle Futures -- Market Talk
15:02 ET - Most-active live cattle futures trading on the CME
closed 1% higher at $1.1935 per pound. That makes it three straight
sessions that cattle futures have risen, with strength in grains
futures limiting the amount of cattle that is making their way to
feedlots for slaughter. "Rising feed costs, lower feedlot
placements during the last three months, and a waning pandemic next
summer have bolstered deferred fed cattle futures," says Steiner
Consulting. Meanwhile, lean hog futures finished 2.1% lower to
66.475 cents per pound. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Jan 19
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations.
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jan 19 +$ 40.72 +$ 33.98
Jan 18 +$ 45.75 +$ 36.18
Jan 15 +$ 47.49 +$ 39.51
* 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 101.6
(Percent of Year-Ago) Select 97.0
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday rose $2.45 per
hundred pounds, to $217.49, according to the USDA. Select-grade
prices rose 60 cents per hundred pounds, to $206.44. The total load
count was 148. Wholesale pork prices fell $1.02, to $76.21 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
January 19, 2021 17:25 ET (22:25 GMT)
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