TOP STORIES

 

U.S. Feedlots Replaced Fewer Cattle in September Than Expected

Feedlot operators placed significantly fewer cattle into the nation's commercial yards in September than analysts expected, a sign that producers could be slowing the pace at which they restock pens amid volatility in prices.

The U.S. Department of Agriculture's cattle-on-feed report released Friday showed around 1.905 million cattle entered U.S. lots through Oct. 1, down 2% compared with this time in 2015. Analysts surveyed by The Wall Street Journal on average forecast a nearly 4% rise from 2015 levels, with estimates ranging from 2.6% below to 8.2% above the year-ago period.

 

McDonald's Earnings Top Expectations; U.S. Growth Slows--3rd Update

McDonald's Corp. beat expectations for global sales growth in the third quarter, but the burger giant's key U.S. market cooled further, fanning speculating that big menu changes could follow.

A two-for-$5 menu and a Chicken McNuggets made without preservatives helped boost U.S. sales. But some analysts predict same-store sales will turn negative in the fourth quarter when they will be compared with the figures run up during the all-day breakfast introduction last year, which fueled sales for much of the year.

Global same-store sales rose 3.5% in the quarter, driven by growth in some of its strongest foreign markets, including Japan and Brazil. In the U.S., same-store sales increased 1.3%, in line with expectations. In the fourth quarter of last year, the first reporting period that reflected the all-day breakfast launch, U.S. same-store sales rose 5.7%.

 

US Foods to Cut Jobs Amid Corporate Restructuring

Food distributor US Foods Holding Corp. plans to eliminate hundreds of jobs as part of a restructuring of its corporate headquarters near Chicago, according to people familiar with the company's plans.

The nation's second largest provider of food and other supplies to restaurants and cafeterias has been looking for ways to reduce costs after its plan to merge with rival Sysco Corp. was foiled by antitrust regulators last year.

 

STORIES OF INTEREST

 

Commodities Investments Rise to Multiyear High -- Market Talk

1125 GMT -- Investors are placing money in commodities again after years of waning interest, says Barclays. "Portfolio managers are increasing their allocations to commodity investments after several years where the opposite was the case," the bank says in a note. Commodities investments in 2016 are at a multiyear high. Between January and September of this year, commodity investment instruments received inflows of $62.3 billion, up from a previous high of $58.3 billion for the same period in 2009, says Barclays. (neanda.salvaterra@wsj.com)

 

FUTURES MARKETS

 

U.S. Cattle Futures Rally to Fresh Three-Week High on Demand Hopes

CHICAGO--U.S. cattle futures rallied for a second-straight session Friday, lifted to a fresh three-week high by signs of stronger demand for discounted meat.

Live-cattle futures for October delivery rose 2.125 cents, or 2.2%, to settle at $1.0115 a pound, the highest settlement since Oct. 7, and marking a 5.5% jump on the week. Most actively traded December live-cattle futures climbed 1.75 cents to $1.01875 a pound on the Chicago Mercantile Exchange.

 

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Oct 21 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically 
                             integrated operations 
                                      * 
Oct 21       +$50.10              +$12.33 
Oct 20       +$50.63              +$13.36 
Oct 19       +$49.90              +$13.38 
 
* 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. 
 
Beef-O-Meter 
This report compares the USDA's latest beef carcass composite 
values as a percentage of their respective year-ago prices. 
 
                                 Beef 
          For Today             Choice   82.7 
      (Percent of Year-Ago)     Select   79.4 
 
USDA Boxed Beef, Pork Reports 
 

Wholesale choice-grade beef prices Friday rose $1.89 per hundred pounds, to $179.78, according to the USDA. Select-grade prices fell $1.01 per hundred pounds, to $166.73. The total load count was 130. Wholesale pork prices fell 48 cents, to $71.47 a hundred pounds, based on Omaha, Neb., price quotes.

 

(END) Dow Jones Newswires

October 21, 2016 17:58 ET (21:58 GMT)

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