TOP STORIES 



  Tyson Foods Cooperating in U.S. Probe of Chicken Price-Fixing 


  Tyson Foods Inc., the leading U.S. chicken producer, said it is cooperating in a Justice Department price-fixing investigation under a leniency program that will allow the company to avoid criminal prosecution in exchange for aiding in the continuing probe of other poultry suppliers. 


  After receiving a grand jury subpoena in April 2019, Tyson discovered that some of its employees were implicated in the alleged scheme. The company said it approached the Justice Department, disclosing its own actions and seeking leniency. 


  United Natural Foods 3Q Sales Rise on Pantry Loading 


  United Natural Foods Inc. said its sales for the fiscal third quarter rose as consumers stocked up amid Covid-19 lockdown orders. 


  The food wholesaler on Wednesday posted net income of $88.1 million, or $1.60 a share, compared with $57.09 million, or $1.12 a share, a year ago. 


  Adjusted earnings were $1.40 a share, ahead of the $1.20 a share analysts polled by FactSet had expected. 


  Red Robin to Keep Smaller Menu -- Market Talk 


  0901 ET - Red Robin Gourmet Burgers says stripping about a third of the items from its menus after the pandemic hit improved its operations, and guests haven't complained significantly. Removing 55 items from the casual-dining chain's menu helped with kitchen speed and efficiency as it reduced staff, executives say in 1Q earnings. It also made the food better, as it was more consistent, they say. "Given the success, we plan to leverage a simplified menu as part of our ongoing business plan," CEO Paul Murphy says. (heather.haddon@wsj.com; @heatherhaddon) 


  STORIES OF INTEREST 


  Ahold Delhaize: Stop & Shop Won't Acquire King Kullen Grocery 


  Koninklijke Ahold Delhaize NV said Wednesday that its U.S. brand has terminated an agreement to acquire King Kullen Grocery Co. 


  The Netherlands-based owner of grocery chains said that Stop & Shop and King Kullen made the joint decision not to proceed with the acquisition on the grounds that the terms of the agreement couldn't be reached. 


  Breakfast, Late Night Declines Hurt Taco Bell -- Market Talk 


  11:23 ET - The disruption of morning and evening eating rituals due to the pandemic continues to hurt Taco Bell, parent-company Yum Brands says in a filing. Traffic at breakfast and late-night is down significantly for the taco chain, its one brand serving breakfast and a favorite with young people out late. KFC and Pizza Hut are benefiting from their dinner business, the company says. Pizza Hut in early May in the US recorded its highest delivery and carry-out average sales week in the past eight years, the company says. (heather.haddon@wsj.com; @heatherhaddon) 


  Premier Foods Share Value May Double on Hovis Sale -- Market Talk 


  1313 GMT - Premier Foods would benefit greatly from the potential GBP100 million sale of bread maker Hovis, in which it has a 49% interest, Shore Capital says. The owner of popular U.K. brands including Mr. Kipling cakes and Ambrosia may well see its share value doubling again, the investment group says, noting the stock is already trading at more than twice as much it was in April. "A sale would represent another particularly helpful step down in net debt and would further underscore the scope for a structural re-rating," Shore Capital says. The investment group has a buy rating on the stock. Shares are up 10% at 52.4 pence. (matteo.castia@dowjones.com) 


  FUTURES MARKETS 


  Cattle Leads Drop in Livestock Futures -- Market Talk 


  15:24 ET - Cattle futures on the CBOT led livestock futures lower Wednesday, with live cattle futures down 1.3% to 96.5 cents per pound while lean hog futures fell 0.3% to 52.8 cents per pound. Whether or not an extended downtrend in cattle futures will happen remains to be seen, says RJO Futures. "Cash markets and boxed beef cut-out values continue to trend lower, but the futures market has already priced in a very aggressive break over the next few weeks," says the firm. High slaughter figures have put pressure on both cattle and hog futures in recent days. (kirk.maltais@wsj.com; @kirkmaltais) 


   CASH MARKETS 

 
Estimated U.S. Pork Packer Margin Index - Jun 10 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Jun 10       +$ 75.29            +$ 13.40 
 
Jun  9       +$ 74.91            +$ 14.41 
 
Jun  8       +$ 80.80            +$ 17.66 
 
* 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. 
 
Beef-O-Meter 
This report compares the USDA's latest beef carcass composite 
values as a percentage of their respective year-ago prices. 
 
                                 Beef 
          For Today             Choice  106.1 
      (Percent of Year-Ago)     Select  107.0 
 
USDA Boxed Beef, Pork Reports 
 


  Wholesale choice-grade beef prices Wednesday fell $10.94 per hundred pounds, to $236.06, according to the USDA. Select-grade prices fell $5.11 per hundred pounds, to $222.84. The total load count was 256. Wholesale pork prices fell 47 cents, to $67.97 a hundred pounds, based on Omaha, Neb., price quotes.