Meat Producers Hope for Stronger Independence Day Demand
Meat retailers think that steady prices will entice more customers to grill outdoors for their Independence Day celebrations.
The poor weather in the U.S. Midwest that discouraged consumers from eating outside in June has passed, and for some July 4th represents the first opportunity to get outside and light up the grill. Warm and dry weather will dominate the continental U.S. on July 4th, weather-prediction firm AccuWeather said.
Pudgy Poultry Weighs on Tyson Profits -- Market Talk
09:39 ET - Broiler chickens went to slaughter at a higher average weight in June, Credit Suisse analysts say, adding to poultry meat supplies at a time when the US meat sector has been trying to recover from a period of low poultry prices. Part of the reason behind the weight gains was the cool US spring, the firm says, and year-to-date US chicken production now is running 1% ahead of last year's total at this point. Credit Suisse still figures chicken prices will rise enough this summer to offset an anticipated $250M in higher corn costs -- used in chicken feed -- but dials down EPS projection for Tyson's fiscal 2019 to $5.83 from $5.91. Shares rise 0.8%. (email@example.com; @jacobbunge)
Farm Bureaus Dispute USDA's Acreage Report -- Market Talk
09:17 ET - Grain markets were roiled on Friday following the release of the USDA's annual crop acreage report, which placed expected corn acres planted in the US at 91.7M acres, 2.6M higher than last year. The controversy from the surprising result has continued, with the American Farm Bureau Federation releasing a collection of feedback from state farm bureaus suggesting that the corn acres reported by the USDA were far overstated -- and soybeans well understated. "It is tough to nail down how accurate the latest USDA planting report is," says the Ohio Farm Bureau. "Some of our economists don't believe it is super far off, but if we ask our farmers they claim much less has been planted." (firstname.lastname@example.org; @kirkmaltais)
STORIES OF INTEREST
Walcom Group Sees No Improvement to African Swine Fever in China
Walcom Group on Wednesday said there will be no significant improvements in conditions as African swine fever continues to spread in China.
In June, the company said it expected revenue in the first half of the year to be substantially below what it reported in the first half of 2018 due to the effects of the disease on pig stock.
Kellogg Shares Trade up 6%, Surpassing Other Food Producers >K
Shares of Kellogg Co. (K) are shooting up in Wednesday trading, notching gains stronger than other packaged-food companies in a short session.
Kellogg's stock is up 6% midday to $56.64, more than triple the gains from General Mills, Hershey Co. (HSY) and Mondelez International.
Canada and EU Reach Boundaries Deal in Event of Swine Fever -- Market Talk
14:20 ET - Officials with the Canadian Food Inspection Agency (CFIA) and the European Commission's Department of Health and Food Safety say that they have reached an agreement to attempt to limit the spread of African swine fever, should it be discovered in Canada, while maintaining safe trade. "If a positive case of ASF is confirmed in an area, geographic boundaries are defined to contain the outbreak," says the CFIA. Canada, the third-largest exporter of pork globally, exported C$4.2M of pork to the EU last year. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Jul 3
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Jul 3 +$ 0.62 +$ 21.60
Jul 2 +$ 1.59 +$ 23.82
Jul 1 +$ 0.26 +$ 23.47
* 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.
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
For Today Choice 104.3
(Percent of Year-Ago) Select 97.8
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $1.22 per hundred pounds, to $219.25, according to the USDA. Select-grade prices fell 63 per hundred pounds, to $195.36. The total load count was 150. Wholesale pork prices fell $1.03, to $70.45 a hundred pounds, based on Omaha, Neb., price quotes.