LIVESTOCK HIGHLIGHTS: Top Stories of the Day
12 May 2020 - 8:03AM
Dow Jones News
TOP STORIES
Kona Grill to Keep PPP Loans -- Market Talk
09:15 ET - Restaurant holding company ONE Group Hospitality says
it's keeping a total of $18.3M in federal Paycheck Protection
Program loans after a review. It will use the funds to hire back
workers as it reopens restaurants. The owner of STK and Kona Grill
says as a small public company it has limited access to raise funds
through capital markets. The company says it "conducted an
extensive and comprehensive review, including consultations with
its outside advisors," before accepting the funds. Shake Shack and
other public restaurant companies have returned the funding after
public pressure and guidance by the Treasury Department.
(heather.haddon@wsj.com; @heatherhaddon)
Ocado Shares Get Lift As Lockdown Boosts Trade -- Market
Talk
17:03 GMT - Ocado Group's positive run continues as the stock
sets another all-time high, says CMC Markets. Shares in the U.K.
online grocer and international retail-technology specialist were
among the biggest FTSE 100 risers, up 2.7% to 19.15 pence. The
company's market capitalization now exceeds the value of
traditional retail rivals Sainsbury, Morrison and Marks &
Spencer combined, CMC says. "Ocado has seen a surge in demand for
its services due to the lockdown," says CMC's David Madden. "Last
week, it confirmed that second-quarter retail revenue jumped by
over 40%. Online shopping was already becoming more popular and the
health crisis is likely to have sped up its growth rate."
(philip.waller@wsj.com)
STORIES OF INTEREST
Grocery Outlet Fiscal Q1 Sales Rise 25% Amid Coronavirus
Pandemic -- MarketWatch
Grocery Outlet Holding Corp. (GO) shares rose nearly 4% in the
extended session Monday after the retailer topped Wall Street
expectations for its adjusted quarterly profit and said stockpiling
in the current quarter has offset a decline in foot traffic amid
the coronavirus pandemic. Grocery Outlet said it earned $12.6
million, or 13 cents a share, in the fiscal first quarter, compared
with $3.8 million, or 6 cents a share, in the year-ago period.
Adjusted for one-time items, the company earned $34 million, or 36
cents a share, compared with $9.9 million, or 15 cents a share, a
year ago. Sales rose 25% to $760 million, compared with $606.3
million in the first quarter of fiscal 2019, the company said.
Analysts polled by FactSet had expected adjusted EPS of 32 cents a
share on sales of $760 million. Comparable-store sales rose 17%
compared with a 4.2% increase in the same period last year, the
company said. So far in the current quarter, same-store sales
growth is tracking in the mid-teens, thanks to "increase in average
basket size partially offset by declines in store traffic due to
shelter-in-place restrictions," Grocery Outlet said. "The impact of
the COVID-19 situation remains fluid and therefore it is difficult
to predict the impact of potential changes to shelter-in-place
restrictions." The company did not provide official earnings
guidance, but said its "performance and liquidity position remain
strong, allowing us to continue investing in pursuit of our long
term growth strategies." Shares of Grocery Outlet had ended the
regular trading day down 0.1%.
USDA Phase One Projection Could Surprise -- Market Talk
12:26 ET - Grains traders could be in for a surprise if optimism
for China fulfilling its obligations under the US-China Phase One
trade agreement is factored into export projections in tomorrow's
WASDE report. "If the USDA were to assume that the Chinese will
make a run at fulfilling the Phase 1 agreement, it is likely that
the 2020/21 initial export forecasts could come in above trade
expectations," says RJO Futures. Analysts polled by WSJ expect
2020/21 soybean carryouts to be 452M bushels, a slight decrease
from the 501M bushel carryout expected in 2019/20. Should the USDA
factor in higher exports, then carryouts for soybeans and other
grains could be well below 2019/20 figures. (kirk.maltais@wsj.com;
@kirkmaltais)
FUTURES MARKETS
Livestock Futures Drop Monday -- Market Talk
15:16 ET - After starting the day mixed, livestock futures
finished the day lower. Live cattle futures on the CME finished the
day down 2.1% at 92.675 cent per pound, while lean hog futures
finished down 2.3% at 60.275 cents per pound. A backup in livestock
supplies, even with some meatpacking plants reopening this week, is
weighing on futures prices. "The livestock sector [is] generally
under pressure... with backed up supplies of cattle reaching near a
million head due to plant closures," says Arlan Suderman of INTL
FCStone. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - May 11
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
May 11 +$176.82 +$127.31
May 8 +$161.70 +$116.24
May 7 +$162.22 +$115.83
* 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 211.9
(Percent of Year-Ago) Select 218.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $7.70 per hundred
pounds, to $468.58, according to the USDA. Select-grade prices rose
$3.98 per hundred pounds, to $452.97. The total load count was 134.
Wholesale pork prices rose $5.15, to $120.95 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
May 11, 2020 17:48 ET (21:48 GMT)
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