LIVESTOCK HIGHLIGHTS: Top Stories of the Day
McDonald's Watching Plant-Based Trend -- Market Talk
14:38 ET - McDonald's is working with Beyond Meat on plant-based
alternatives in markets, but the company isn't plunging into the
phenomenon yet. "We do recognize that plant-based is a long-term
trend," CEO Chris Kempczinski says at a CNBC business event. "These
things tend to take quite a while to play out. These are not things
in our experience that happened overnight." Kempczinski says a
recent remark by Impossible Foods that plant-based products could
become dominant in the next five to 10 years was "optimistic."
Elanco Animal Health to Buy Kindred Biosciences for Roughly $440M
Elanco Animal Health Inc. has agreed to buy Kindred Biosciences
Inc. for about $440 million, combining two animal-health companies,
they said. At $9.25 a share, the purchase price represents a
premium of 45.9% over Kindred's closing price of $6.34 a share
Tuesday. Elanco Wednesday said it sees the deal as advancing its
presence in the dermatology category and expanding its
veterinary-clinic presence. Elanco backed its second-quarter
revenue guidance of $1.23 billion to $1.26 billion and 2021 revenue
guidance of $4.67 billion to $4.71 billion.
STORIES OF INTEREST
Consolidation Takes Root Among Farm Startups -- Market Talk
1157 ET - Consolidation is afoot among startups that are aiming
to transform farming with data science and digital technology.
Bushel, a North Dakota company working to automate grain
transactions between farmers, grain elevators and crop processors,
has acquired FarmLogs, an online management system for farmers, in
a deal that Bushel CEO Jake Joraanstad says will strengthen digital
links from farms to crop buyers. Ag-tech startups have drawn heavy
investment from venture capital investors but have faced lean years
in the farm belt over much of the past decade, making it tougher to
peddle new services to cash-strapped farmers. (firstname.lastname@example.org;
McDonald's Says Companies Need to Pay More to Compete -- Market Talk
14:32 ET - McDonald's CEO Chris Kempczinski says companies need
to pay more than the federal minimum wage to attract workers in a
strong US economy coming out of the pandemic. "I think there's no
doubt that $7.25 in this day and age is not what you should be
paying or need to be paying to be competitive in the marketplace,"
Kempczinski says at a CNBC business event. The company is boosting
wages in its US restaurants, and says it's watching what Amazon,
Walmart and other companies' moves on pay are. "That's a talent
pool that we're competing with, so we respond to where the market
is moving," he says. (email@example.com; @heatherhaddon)
Arby's Owner Promotes Executive From Its Dunkin' Unit to CFO
Inspire Brands Inc., the owner of Arby's, Buffalo Wild Wings and
other restaurant chains, has tapped the chief financial officer of
its Dunkin' Brands business to manage the group's finances.
Atlanta-based Inspire, which was created in 2018 through the merger
of Arby's and Buffalo Wild Wings, said Wednesday that Kate Jaspon
is set to succeed David Pipes, who is retiring. Mr. Pipes became
CFO of Arby's in 2011 and was involved in various transactions,
including the deal to form Inspire and the 2020 acquisition of
Dunkin' Brands Group Inc. for $8.8 billion.
Hog Futures Finish Limit Down On Word Of Rebuilt Chinese Herds -- Market Talk
15:06 ET - The Chinese government's claims that its hog herds
are close to being fully rebuilt after their decimation due to
African swine fever weighed on CME hog futures today, with the
most-active contract finishing down 3 cents per pound to $1.155 per
pound--a 2.5% drop. According to China's Ministry of Agriculture,
the country's hog population is 98.4% of where it was in 2017,
prior to the onset of African swine fever. "As these numbers
continue to increase, the chances of high US pork exports
decrease," says Karl Setzer of AgriVisor. Meanwhile, live cattle
futures finished trading today up 0.8% to $1.24925 per pound.
Estimated U.S. Pork Packer Margin Index - Jun 16
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jun 16 -$ 38.16 +$102.96
Jun 15 -$ 27.43 +$107.22
Jun 14 -$ 16.90 +$120.08
* 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 144.0
(Percent of Year-Ago) Select 135.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $5.26 per
hundred pounds, to $329.17, according to the USDA. Select-grade
prices fell $8.32 per hundred pounds, to $289.96. The total load
count was 141. Wholesale pork prices fell $1.98, to $118.96 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
June 16, 2021 17:29 ET (21:29 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.