TOP STORIES
Bunge Beats Expectations With Larger 2Q Profit
Bunge Ltd. on Wednesday recorded a larger-than-expected second-quarter profit, driven by strong margins despite the effects of the Covid-19 pandemic.
The company recorded a net profit attributable to Bunge of $516 million, or $3.47 a share, compared with a profit of $214 million, or $1.43 a share, in the same three-month period a year earlier.
Fast-Food Chains See Shifts Made During Pandemic Paying Off
Fast-food restaurants are responding to changing consumer tastes during the coronavirus pandemic in ways that have boosted profits at some chains to where they were before the health crisis or even higher.
Some restaurants are focusing on expanding their takeout and drive-through businesses, while others are betting on delivery services amid a recent surge in new infections and changing regulations in the U.S. And many expect these efforts to pay off longer term as the pandemic shows no signs of fading and some consumer habits could change permanently.
STORIES OF INTEREST
China Hog Barns Rapidly Refilling, Bunge Says -- Market Talk
0849 ET - The loss of a huge portion of China's hog herd to African swine fever meant the loss of their appetites, too, reducing demand for feed supplied by agricultural processors like Bunge Ltd. But that's come back, says Greg Heckman, Bunge's CEO: "In China, their [soybean] meal demand has recovered much more quickly than any of us would have thought." Demand's strong in the US, too, as poultry and hog numbers remain near historic highs, helping Bunge weather slowdowns in foodservice demand for vegetable oil. (jacob.bunge@wsj.com; @jacobbunge)
Blue Apron Swings to Profit Amid Pandemic -- Update
Blue Apron Holdings Inc. reported its first profitable quarter since going public three years ago, buoyed by higher demand for cooking at home during the coronavirus pandemic.
The meal-kit company said it generated $1.1 million in the second quarter. It had a net loss of $7.7 million the prior year. Sales increased about 10% to $131 million.
FUTURES MARKETS
Hog Futures Keep Sliding -- Market Talk
15:12 ET - Lean hog futures trading on the CME finish 1.8% lower, at 49.825 cents per pound. It's the second straight day that hog futures finish lower, amid questions of whether hog prices can maintain a growth spurt that's usually common this time of the year. "It is not unusual for hog values to be higher in the summer months," says Steiner Consulting Group. "Some of that has to do with the fact that fewer hogs are available during this time of year, a function of a lower pig crop during winter months." However, with coronavirus, the usual seasonality seen in hog prices has been thrown off. Meanwhile, live cattle futures finish trading Wednesday up 1% at $1.0605 per pound. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Jul 29
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Jul 29 +$ 48.83 +$ 11.96
Jul 28 +$ 51.04 +$ 15.21
Jul 27 +$ 52.74 +$ 18.86
* 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 94.0
(Percent of Year-Ago) Select 99.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $1.85 per hundred pounds, to $201.11, according to the USDA. Select-grade prices rose $1.17 per hundred pounds, to $189.49. The total load count was 174. Wholesale pork prices fell $1.51, to $67.30 a hundred pounds, based on Omaha, Neb., price quotes.
