LIVESTOCK HIGHLIGHTS: Top Stories of the Day
Starboard Takes Elanco Stake, Nominates Three to Its Board --
Activist investor Starboard Value LP has taken a stake in Elanco
Animal Health Inc. and nominated three directors to the company's
board, according to people familiar with the matter.
Elanco, which makes vaccines and treatments for pets and
livestock, has a market value of about $15 billion. The exact size
of Starboard's stake -- and specifically what the fund intends to
advocate at Elanco -- couldn't be learned, though it tends to make
sizable investments in companies it targets
Burger King Spending for Chicken Sandwich Launch -- Market
0954 ET - Burger King franchisee Carrols Restaurant Group says
its new chicken sandwich launch is requiring it to spend on kitchen
equipment and labor. The hand-breaded sandwich set to debut in May
will require a dedicated worker to prepare it, as the product is
raw, not frozen like most other sandwich patties, the company says
in 4Q earnings. The taste is much better than the current chicken
sandwich and it should drive sales, CEO Daniel Accordino says.
McDonald's launched its new chicken sandwich last week as interest
in the product has grown. (firstname.lastname@example.org;
STORIES OF INTEREST
J Sainsbury to Cut 500 Office Jobs in New Food Business-Focused
J Sainsbury PLC said Wednesday that it expects to lay off 500
office workers as the company looks to redirect savings to its core
Sainsbury, the second-largest grocer in the U.K. by market
share, said the new proposals intend to adapt the business as part
of Chief Executive Simon Roberts' plan to put 'Food First,' which
would include simplifying store-support operations and focus more
on its online operations.
Chinese Grain Demand Fundamental-Based, ADM Says -- Market
1435 ET - China's appetite for US grain exports isn't expected
to evaporate any time soon, says Ray Young, executive vice
president of Archer Daniels Midland. Speaking at a virtual
conference Wednesday, Young says that the company sees China's
appetite for US soybeans and corn as being based on need to use the
commodities, not just simply stockpile them. "I think the reason
China is buying agricultural products throughout the world is
fundamental demand," says Young -- calling China's appetite a
"medium-term" trend. The reason, Young says, is because China has
escaped the throes of the Covid-19 pandemic while other areas like
the US still grapple with it -- making China's demand stand out in
front of others. (email@example.com; @kirkmaltais)
Synlait Sees Steeper Fall in Full-Year Earnings -- Update
WELLINGTON, New Zealand--Synlait Milk Ltd. indicated its
full-year earnings would fall by more than previously forecast
because of the weakened financial performance of a key customer, a2
Milk Company Ltd.
The New Zealand milk-powder manufacturer said its previous
guidance--that 2021 financial year net profit would be
approximately half of the previous year--was no longer
Hog Futures Rebound on Cutout Demand -- Market Talk
1529 ET - After slumping for the past week, lean hog futures on
the CME posted a 3% rebound, closing up to 87.925 cents per pound.
The uptick comes as certain pork cutouts are seeing
higher-than-usual demand as the spring season approaches. One such
cutout is ham, which has gained 33% over the past month. "Fewer
hams in the freezer, fewer business days to accumulate hams for
Easter and robust export demand have bolstered ham prices so far,"
says Steiner Consulting Group. Meanwhile, live cattle futures
finished trading today virtually unchanged, at $1.194 per pound.
Estimated U.S. Pork Packer Margin Index - Mar 3
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Mar 3 +$ 5.01 +$ 59.38
Mar 2 +$ 16.88 +$ 67.76
Mar 1 +$ 16.64 +$ 62.52
* 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 112.8
(Percent of Year-Ago) Select 111.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $1.65 per
hundred pounds, to $233.03, according to the USDA. Select-grade
prices fell $1.93 per hundred pounds, to $224.24. The total load
count was 120. Wholesale pork prices fell $3.90, to $90.02 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
March 03, 2021 17:39 ET (22:39 GMT)
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