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)

Copyright (c) 2018 Dow Jones & Company, Inc.