American Diners Have More Takeout in Their Future
Dining rooms are starting to reopen. While the closures were temporary, their effects on the industry are likely to last much longer.
The shutdown of dining rooms across the U.S. devastated the sit-down restaurant industry. Unlike fast-food chains, which have built their businesses on drive-through service and online ordering options, many of these operators had to invent new business models on the fly suited for takeout and delivery. These restaurants tend to feature pricier, more complex menus and require more labor to operate than their quick-serve rivals.
STORIES OF INTEREST
Soybean Futures Rise as Sales to China Pick Up
Soybeans for July delivery rose 1.7% to $8.47 a bushel on the Chicago Board of Trade on Tuesday, in reaction to the USDA confirming a new purchase of U.S. soybeans by China.
Corn for July delivery rose 0.3% to $3.19 a bushel.
Wheat for July delivery fell 0.4% to $5.06 3/4 a bushel.
Corn Price Movement Expected to Be Limited -- Market Talk
14:02 ET - Corn futures on the CBOT rise 0.6% to nearly $3.20 per bushel. Prices have stayed rangebound for the past month, not leaving the $3.15 to $3.25 per bushel range since mid-April. It may be awhile before they do break that range, says Todd Hubbs of the University of Illinois. "Corn prices continue to stay within a relatively narrow range and that pattern may remain for the next several weeks," says Hubbs. "The potential for prices to move out of the range depends on supply issues and, more importantly, the nascent economic recovery." Regions of the US reopening from the Covid-19 pandemic has been a source of optimism for US markets across the board Tuesday. (firstname.lastname@example.org; @kirkmaltais)
Export Inspections for Wheat and Soybeans Low -- Market Talk
11:48 ET - Export inspections for both US wheat and soybeans were on the lower end this week according to Terry Reilly of Futures International, with wheat inspections totaling 457,777 metric tons and soybean inspections totaling 333,127 tons. Oddly, few beans inspected were for delivery to China--with the top three buyers being Mexico, Japan, and Egypt this week. Over 166,000 tons of wheat inspected were for delivery to the Chinese mainland, however. (email@example.com; @kirkmaltais)
USDA Announces New Export Sales to China -- Market Talk
09:28 ET - After a gap in new purchasing injected some uneasiness into US soybean futures last week, this week is starting solid -- with the USDA confirming that China has purchased 264,000 metric tons of soybeans Tuesday. Of that, 66,000 tons are for delivery in 2019/20, and the remainder will be delivered in 2020/21. Additionally, 216,000 tons of soybean meal were sold to unknown destinations for delivery in 2019/20 -- a purchase some in the market may believe is by China as well. July soybean futures on the CBOT are up 0.6% pre-market. (firstname.lastname@example.org; @kirkmaltais)
Hog Futures Finish Substantially Higher -- Market Talk
15:01 ET - July hog futures on the CME jump 6.6% to 59.575 cents per pound, responding to optimism that economies around the world will be able to reopen from coronavirus-related lockdowns - particularly China, where African swine fever has quieted but not disappeared. Meanwhile, live cattle futures traded up 2% at 99.25 cents per pound. (email@example.com; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - May 26
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
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 -
May 26 +$116.51 +$ 74.89
May 22 +$115.37 +$ 73.15
May 21 +$114.66 +$ 75.69
* 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 173.9
(Percent of Year-Ago) Select 172.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Tuesday fell $11.25 per hundred pounds, to $385.49, according to the USDA. Select-grade prices fell $14.16 per hundred pounds, to $360.02. The total load count was 222. Wholesale pork prices rose 81 cents, to $96.57 a hundred pounds, based on Omaha, Neb., price quotes.