Sysco Hit By Weaker-Than-Expected Profit Growth -- Market Talk
10:37 ET - Higher inflation in dairy and beef categories hurt Sysco's gross profit during F2Q 2020, company CFO Joel Grade during an earnings call with analysts. He said normalizing pricing in produce also affected the company's margins in the latest quarter. He believes these trends will continue. Shares are down roughly 6% Monday morning on weaker-than-expected growth in profit. (email@example.com; @_jaewonkang)
Chefs' Warehouse Acquires Cambridge Packing Co. >CHEF
Chefs' Warehouse Inc. (CHEF) said it acquired substantially all of the assets of Cambridge Packing Co., based in Boston.
The distributor of specialty food products said Cambridge Packing provides beef, poultry, pork and seafood products.
STORIES OF INTEREST
Jana Partners to Propose Nominees to Bloomin' Brands Board >BLMN
Jana Partners LLC said Monday it would propose board nominees for election at the 2020 annual meeting of Bloomin' Brands.
Jana, in a Securities and Exchange Commission filing, said it holds a 7.4% stake in Bloomin', the casual dining restaurant company whose brands include Outback Steakhouse.
The Other Super Bowl: Meat Vs. Plants -- Market Talk
10:17 ET - The fake meat wars have hit prime time. The Center for Consumer Freedom, a nonprofit advocating for meat producers and other industries, aired an ad in last night's Super Bowl featuring elementary school spelling bee contestants trying, and failing, to spell the lengthy scientific names of ingredients in plant-based burgers. Impossible Foods, whose soy protein-derived burger is helping fuel the current meat-alternative wave, responds via YouTube with a parody featuring CEO Pat Brown asking students to spell "poop" -- going on to say that samples of ground beef regularly have been found to contain fecal bacteria. The Super Bowl is becoming a battleground in the food wars: Last year's broadcast included a Bud Light commercial blasting corn syrup, angering Midwestern farmers. (firstname.lastname@example.org; @jacobbunge)
Livestock Futures Turn Corner on Hopes of Chinese Buying -- Market Talk
Both lean hog and live cattle futures on the CME rise, with lean hogs finishing 1.7% higher at 62.625 cents per pound and live cattle futures up 0.9% at $1.208 per pound. For hogs, the move higher comes as traders view low prices as an inflection point. Pork cutout prices have fallen, with cutouts like pork butt, ham, and belly all down anywhere from $8 to $16 per hundredweight versus this time last week. Trader expectations that China will soon come calling for additional pork and beef exports drove rising prices on Monday. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Feb 3
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Feb 3 +$ 27.00 +$ 15.06
Jan 31 +$ 28.72 +$ 15.51
Jan 30 +$ 29.35 +$ 16.73
* 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 98.7
(Percent of Year-Ago) Select 97.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Monday fell $1.44 per hundred pounds, to $211.56, according to the USDA. Select-grade prices fell $3.24 per hundred pounds, to $207.42. The total load count was 103. Wholesale pork prices fell 21 cents, to $68.74 a hundred pounds, based on Omaha, Neb., price quotes.