LIVESTOCK HIGHLIGHTS: Top Stories of the Day
December 05 2018 - 4:48PM
Dow Jones News
TOP STORIES
French Protests Hurting Sysco -- Market Talk
11:35 ET - Distributor Sysco say that protests sweeping across
France are hurting its ability to operate in the country. "The
ability to deliver product in some of these areas is tough," CFO
Joel Grade tell investors at a Barclays industry conference,
speaking about the so-called yellow vest movement. The world's
largest distributor is also facing supply disruptions in its large
UK business due to the country's moves to leave the EU. About half
of its British division's supply comes from the EU.
(heather.haddon@wsj.com; @heatherhaddon)
STORIES OF INTEREST
Pizza Hut US President Still Not Satisfied With Turnaround --
Market Talk
10:29 ET - Artie Starrs, president of Pizza Hut US, told
investors that he's proud of the progress the brand has made in its
turnaround but that he's still dissatisfied overall. The chain,
which had lagged Domino's and other rivals in technology and
delivery time, has made progress in boosting its digital orders and
reducing customer wait times for delivery. But Starrs told
investors at a Yum Brands investor conference that many customers
still don't realize Pizza Hut delivers. That perception, he said,
is aided by outdated dine-in restaurants that don't scream "We
deliver." The company is opening more delivery-focused stores with
pick-up windows and modern exteriors to help change that
perception. (julie.jargon@wsj.com)
KFC Plans to Add More Kiosks, Delivery -- Market Talk
09:26 ET - KFC CEO Tony Lowings tells investors gathered for a
Yum Brands presentation that the chicken chain is trying to offer
more convenience to consumers. To that end, KFC plans to have more
self-order kiosks globally than Bank of America by 2020 and more
restaurants offering delivery than any pizza delivery company. The
growing popularity of delivery, he said, is also leading the chain
to develop smaller stores. (julie.jargon@wsj.com)
NZ Shares Weaken, Fonterra 1Q Update in Focus -- Market Talk
21:16 GMT - New Zealand's NZX-50 index falls 2.5 points to
8778.98 soon after opening, as investors digest the impact of a
weak 1Q update from dairy giant Fonterra. US markets were closed on
Wednesday for a day of mourning for former President George H.W.
Bush, so local investors had few clues from overseas to follow.
Fonterra lowered its 2018/19 Farmgate Milk Price forecast to
NZ$6.00-NZ$6.30 per kilo of milk solids, from NZ$6.25-NZ$6.50, and
said its 1Q revenue fell by 4% as global milk supply outpaces
demand. While Fonterra Shareholders' Fund was unchanged at NZ$4.71,
other dairy stocks weakened with a2 Milk falling 0.5% to NZ$11.00
and Synlait down 0.5% at NZ$9.40. Auckland International Airport,
one of the market's biggest constituents, was among the early
risers with a 0.4% gain to NZ$7.13. (david.winning@wsj.com;
@dwinningWSJ)
FUTURES MARKETS
Livestock Futures Show Positive Movement on China Hopes
Lean hog futures for February gained 2.57% to 67.75 cents per
pound. Live cattle contracts for February rose by 0.6% to $1.22375
per pound. Talk of China's impending return to purchasing soybeans
drove optimism that China may also restart purchasing U.S. pork.
According to one source, tweets from President Trump Wednesday
morning added fuel to the rumors, with the president indicating
"very strong signals" for imports being restarted. "It looks to me
like some are taking the comments from China minister of commerce
that they confirmed the 90-day deadline and will quickly implement
the items that they agreed to over the past weekend," said
independent analyst Dan Norcini.
CASH MARKETS
Zumbrota, Minn Hog Steady at $33.00 - Dec 5
Barrow and gilt prices at the Zumbrota, Minn., livestock market
are steady at $33.00 per hundredweight.
Sow prices are steady. Sows weighing 400-450 pounds are at
$33.00, 450-500 pounds are $33.00 and those over 500 pounds are at
$34.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Dec 5
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Dec 05 +$ 44.20 +$ 17.01
Dec 04 +$ 40.53 +$ 17.29
Nov 30 +$ 33.93 +$ 12.43
* 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 103.3
(Percent of Year-Ago) Select 106.9
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell 60 cents per
hundred pounds, to $213.26, according to the USDA. Select-grade
prices fell 65 cents per hundred pounds, to $196.86. The total load
count was 183. Wholesale pork prices fell 13 cents, to $69.65 a
hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
December 05, 2018 17:33 ET (22:33 GMT)
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