Performance Food Revenue Up, But Higher Costs Weigh on Profit
Performance Food Group revenue rose in the company's latest quarter, but profit fell slightly.
The food distributor Wednesday reported sales of $5.9 billion for its fiscal fourth quarter, up 28% compared with the same period a year ago. Analysts predicted $5.58 billion in revenue, according to FactSet.
Walcom Group Shares Dive as Business Totters, Hit by Swine Flu
Shares of Walcom Group tumbled on Wednesday after the company warned that revenue was below expectations due to the continuing African swine flu epidemic in China, and that if it can't secure funding it may be forced into liquidation.
The U.K.-listed company said that the pig population in the country was reduced as a result of the disease, hitting its domestic customers. The effects of the swine flu are expected to continue at least for the next six months, it added.
STORIES OF INTEREST
Applebee's Strikes DoorDash Deal -- Market Talk
08:33 ET - Applebee's says its rolling out national delivery service through DoorDash, the latest chain to sign up with the quickly expanding food delivery service. The Dine Brands division will offer delivery across 1,300 of its 1,700 locations. It's one of the largest delivery launches in the casual-dining sector, the company says. Applebee's executive Scott Gladstone tells The Wall Street Journal the company chose DoorDash for its expansive national footprint and willingness to pass along costs clearly to customers. Applebee's executives have pushed back at the fees charged by delivery companies. (email@example.com; @heatherhaddon)
Ethanol Futures Hit 5-Year Low as Inventories Build -- Market Talk
11:17 ET - September ethanol futures on the CBOT are trading at their lowest levels in nearly five year, currently trading at $1.272 per barrel, down 1.2% for the session. This decrease extends the contract's fall to nearly 25% since June. Prices haven't been this low since October 2014. Prices, which largely follows CBOT corn, are reacting to an EIA forecast Wednesday that ethanol stockpiles rose to 23.9 million barrels, up 4% from the same time last year and 17% since 2016. (firstname.lastname@example.org; @kirkmaltais)
Hogs Post Bounce Back, Cattle Falters -- Market Talk
15:43 ET - October lean hog futures on the CME finished the Wednesday session 3.4% higher at 66.775 cents per pound, a solid rebound from the drubbing the price took Tuesday. Demand for pork belly is seen as one support for hog futures. "Bellies continue to run higher which is helping the carcass but with bellies around the 170-180 [dollars per hundredweight] area, we should begin to grow concerned that they could run out of steam," says Jeff French of Top Third Ag Marketing. Meanwhile, October live cattle futures didn't finish Wednesday higher, but at least slowed its rate of decline - with the price falling 0.8% to 98.5 cents per pound. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Aug 14
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Aug 14 +$ 30.75 +$ 57.91
Aug 13 +$ 31.50 +$ 59.16
Aug 12 +$ 37.22 +$ 61.44
* 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 110.8
(Percent of Year-Ago) Select 102.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose $5.98 per hundred pounds, to $232.34, according to the USDA. Select-grade prices rose $5.34 per hundred pounds, to $205.92. The total load count was 162. Wholesale pork prices fell 58 cents, to $87.34 a hundred pounds, based on Omaha, Neb., price quotes.