LIVESTOCK HIGHLIGHTS: Top Stories of the Day
October 22 2018 - 4:51PM
Dow Jones News
TOP STORIES
Bakkavor Unit Recalls 800,000 Pounds of Meat, Poultry Products
in U.S.
A U.S. unit of U.K. food maker Bakkavor Group PLC (BAKK.LN) is
recalling about 800,000 pounds of ready-to-eat meat and poultry
products due to possible salmonella and listeria contamination, the
U.S. Department of Agriculture said.
Bakkavor Foods USA Inc. is recalling products made between Sept.
27, 2017, and Oct. 15, 2018, because an onion ingredient may be
contaminated, the USDA said.
Activist Investor Reiterates Demands for Bloomin' Brands
Activist investor Barington Capital Group LP has reiterated its
call for Bloomin' Brands Inc. (BLMN) to spin off its smaller brands
and for changes to how the company is governed.
In a letter addressed to the independent directors on the board
of Bloomin', Barington Chief Executive James Mitarotonda said that
Bloomin' should consider a spinoff or sale of its restaurants
Bonefish Grill, Carrabba's and Fleming's, a move that would allow
it to focus on Outback Steakhouse.
STORIES OF INTEREST
McDonald's Stock Could Rise on More Makeovers -- Barrons.com
McDonald's (MCD) has lagged the market this year, and while
third-quarter earnings may not wow, analysts expect better times
ahead for the stock.
Where we were: McDonald's is down more than 3% year to date, a
stark contrast to its strong 2017 performance.
Where we're headed: Remodeling stores may weigh on comparable
sales when McDonald's reports results early Tuesday, but analysts
believe those projects will become tailwinds soon enough,
brightening the 2019 outlook for the stock.
United Natural Falls as Supervalu Merger Wraps -- Market
Talk
11:23 ET - United Natural Foods falls 4.3% as the specialty
distributor completes its $2.9B merger, including debt, with
mainstream wholesaler Supervalu. United Natural's bid for Supervalu
back on July 26 sent shares soaring 65% to $32.17, near the $32.50
a share United Natural was offering for the company. But United
Natural fell more than 16% that day to $34.48 and has continued to
tumble, trading at $25.59 Monday. Investors worry about how the
acquisition will boost United Natural's finances as it absorbs the
national player serving conventional grocers instead of specialty
ones such as Whole Foods. United Natural says work to slice costs
has begun, and it will save $175M by 2021. (heather.haddon@wsj.com;
@heatherhaddon)
FUTURES MARKETS
Livestock Futures End Higher -- Market Talk
15:33 ET - Livestock futures end higher on lower cattle-on-feed
placements and growing swine disease outbreaks abroad. CME lean hog
futures rise 3.1% to 53.175 cents per pound, while live cattle
futures rise 1.1%. The USDA said Friday that feedyard operators put
5% fewer cattle in their lots for fattening in September than a
year earlier. The figures were lower than analysts expected, and
support prices today, experts say. Meanwhile, reports of new cases
of African swine fever in regions that produce more hogs are
supporting hog contracts. (francesca.fontana@wsj.com;
@francescamarief)
CASH MARKETS
Zumbrota, Minn Hog Steady at $38.00 - Oct 22
Barrow and gilt prices at the Zumbrota, Minn., livestock market are
steady at $38.00 per hundredweight.
Sow prices are $4.00 higher on light weights and $5.00 higher on
heavier sows. Sows weighing 400-450 pounds are at $35.00-$37.00,
50-500 pounds are $35.00-$37.00 and those over 500 pounds are at
$39.00-$41.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Oct 22
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
*
Oct 22 +$ 37.37 +$ 32.92
Oct 19 +$ 34.66 +$ 32.77
Oct 18 +$ 34.34 +$ 33.25
* 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 105.0
(Percent of Year-Ago) Select 103.5
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday rose $1.35 per hundred
pounds, to $209.28, according to the USDA. Select-grade prices rose
$3.42 per hundred pounds, to $197.66. The total load count was 97.
Wholesale pork prices rose 7 cents, to $77.05 a hundred pounds,
based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
October 22, 2018 17:36 ET (21:36 GMT)
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