LIVESTOCK HIGHLIGHTS: Top Stories of the Day
22 October 2016 - 09:13AM
Dow Jones News
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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