TOP STORIES:
Corn Falls as New Coronavirus Cases Rise
Corn for July delivery fell 2.2% to $3.17 1/4 a bushel on the Chicago Board of Trade Thursday as Texas paused reopening plans and new coronavirus cases and hospitalizations increased in a number of states. Soybeans for November delivery fell 0.2% to $8.68 1/4 a bushel. Wheat for July delivery rose 0.5% to $4.88 1/4 a bushel.
The resurgence of Covid-19 in many states such as Texas, which halted reopening plans, has grain traders on edge that the hit on the food service industry by restaurant closures will continue.
"Covid-19 is returning into the mindset of ag trading as the hospitality/food service industries will be hobbled through the summer," said AgResource. "This will produce a negative demand lean for U.S. grain and ag prices."
Food Exporters Resist China’s New Coronavirus Restrictions
China is tightening restrictions on food imports as it seeks to stave off a resurgence of the coronavirus, but its efforts are meeting resistance from government agencies of major food exporters.
China's customs authority requested last week that companies sending meat, dairy and other food products to the country sign documents declaring that their food hasn’t been contaminated by the virus and that they are in compliance with Chinese laws and international guidelines for food safety during the Covid-19 pandemic.
Darden Expects to Benefit from Competitors Closing -- Market Talk
09:12 ET - Darden Restaurants says it will benefit as competitors close in the highly competitive casual-dining sector. "There will be less competition and less restaurants as we move forward. Scale is going to matter more than ever," CEO Gene Lee says. Other big chains, such as Chipotle Mexican Grill, also expect to benefit from new real estate opportunities as independent restaurants and retailers close. Darden expects to increase its locations by two to three percent going forward. (heather.haddon@wsj.com; @heatherhaddon)
STORIES OF INTEREST:
Illnesses, Deaths Rising at Meatpacking and Food Plants -- Market Talk
12:37 ET - More meatpacking and food-processing workers have fallen ill and died as the coronavirus pandemic rages in the US, according to the United Food and Commercial Workers Union. The union, which represents roughly three-quarters of workers in beef and pork plants and one-third of workers in poultry plants, said 93 meatpacking and food-processing workers have died due to Covid-19 and 4,978 have been infected or are symptomatic. Union leaders during a press conference repeated calls for the Trump administration to issue enforceable standards to protect food-chain workers rather than leaving pandemic responses up to individual companies. "OSHA and USDA still continue to ignore the health and safety risks inside plants," says Mark Lauritsen, UFCW's International Vice President. "The time is long past for our leaders to take immediate action to protect workers." (jesse.newman@wsj.com; @jessenewman13)
Target Adding Grocery Items to Pickup and Drive Up Services in U.S.
Target Corp. on Thursday said it will add fresh and frozen grocery items to its Order Pickup and Drive Up services in over 400 stores by the end of this month.
The company also said the new service will be available in over 1,500 stores in time for the holidays.
Canopy Growth, Acreage Modify Plan of Arrangement
Canopy Growth Corp. and Acreage Holdings Inc. said Thursday that they agreed to modify their plan of arrangement.
Under the arrangement agreement from 2019, cannabis, hemp- and cannabis-device company Canopy Growth agreed to acquire all of the securities of Acreage contingent upon changes in U.S. federal law to permit the general cultivation, distribution, and possession of marijuana.
Acreage and Canopy Growth said they entered into the new agreement to better align the terms with broader market and economic factors, provide Acreage shareholders with an initial up-front payment and give Acreage shareholders the ability to participate in upside potential.
THE MARKETS:
US Hog Inventory Up 5% From Last Year -- Market Talk
The USDA says that the US inventory of hogs and pigs is up 5% from the same time last year. In its hog and pigs report released following the market's close, the USDA said that US inventory of all hogs and pigs on June 1, 2020 was 79.6 million head -- up 5% from the same time last year and up 3% from March 2020. Hogs on the market are up 6%, the USDA says. The August lean hog futures contract on the CME finished trading Thursday up 0.2% to 51.325 cents per pound, with traders reluctant to make a big movement ahead of the report's release. Meanwhile, live cattle futures finished 0.3% lower to 96.075 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)
