LIVESTOCK HIGHLIGHTS: Top Stories of the Day
06 February 2018 - 10:09AM
Dow Jones News
TOP STORIES
Arby's, Buffalo Wild Wings Merge to Compete in Fast-Changing
Industry
Fast-food and casual-dining restaurants are fighting for market
share as new competitors offer consumers more ways to eat. Arby's
Restaurant Group Inc. believes it can thrive by doubling down on
both business models.
After privately held Arby's closes its merger with Buffalo Wild
Wings Inc. on Monday, the renamed Inspire Brands Inc. aims to
acquire more chains to mitigate the threat of consumers losing
their appetite for any one type of restaurant concept or
cuisine.
U.S. Farmers Are Producing Too Much Food. Here's Why They Can't
Stop
Farmers are producing too much wheat and corn, dragging down
economic growth and pushing some farmers out of business.
Farming has unique challenges. Start-up and expansion costs are
large, investments take years to mature and the nation's vast
network of farmers is too disjointed to cooperate on production
cuts. This can result in an economic enigma: rising output amid
falling prices.
STORIES OF INTEREST
Bayer Makes New Concessions for EU Regulators' Approval of
Monsanto Deal -- Update
Bayer AG (BAYN.XE) said Monday that it has made further
concessions to European regulators as part of its $63.5 billion bid
to acquire Monsanto Co (MON).
The German pharma company said it submitted "very significant"
remedies to the European Commission and that it is confident the
offered concessions fully address the regulator's concerns.
Sugar Prices Fall on Oversupply Worries -- Market Talk
1023 ET - Sugar prices are down, with supply concerns continuing
to weigh on the market. Sugar for March delivery is down 0.5% at
13.56 cents a pound. Prices have traded roughly sideways the last
few weeks after falling for much of January. Despite forecasts for
lower production in Brazil and globally in the 2018-19 growing
season, analysts expect the market to remain well supplied moving
forward. Lower energy prices and a stronger dollar are also
weighing. The declines come after CFTC data Friday showed
speculative investors increased bearish positions. JPMorgan Chase
analysts say clients are still constructive on sugar given after
declines in recent months have made the commodity relatively cheap.
ING analysts says industry experts at the ongoing Dubai Sugar
Conference expect a supply surplus to continue.
(amrith.ramkumar@wsj.com; @AmrithRamkumar)
FUTURES MARKETS
Hog Futures Jump on Winter Blast; Cattle Declines
CHICAGO--Lean hog futures climbed to their highest level since
mid-August as a snowstorm pummeled the biggest pork-producing state
in the U.S., potentially constraining hog supplies. Cattle
contracts fell.
February-dated hog contracts, set to expire in two weeks,
settled 0.9% higher at 75.87 cents a pound at the Chicago
Mercantile Exchange. It was the fourth consecutive gain for the
contract, which is up 4.6% since the beginning of the month.
CASH MARKETS
Zumbrota, Minn Hog Steady At $44.00 - Feb 5
Barrow and gilt prices at the Zumbrota, Minn., livestock market
today are steady at $44.00 per hundredweight. Sow prices are
$3.00-$4.00 higher. Sows weighing 400-450 pounds are at
$47.00-$49.00, 450-500 pounds are $47.00-$49.00 and those over 500
pounds are $50.00-$52.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Feb 5
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Feb 5 +$ 8.64 +$ 39.98
Feb 2 +$10.62 +$ 43.01
Feb 1 +$12.41 +$ 43.53
* 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 109.4
(Percent of Year-Ago) Select 107.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose 33 cents per
hundred pounds to $209.43, according to the USDA. Select-grade
prices rose 71 cents per hundred pounds to $204.16. The total load
count was 85. Wholesale pork prices fell $1.41 to $79.00 a hundred
pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
February 05, 2018 17:54 ET (22:54 GMT)
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