TOP STORIES

Taiwan to Ease Limits on American Pork and Beef, in Hopes of Smoothing Path for Trade Talks -- 4th Update

HONG KONG -- Taiwanese President Tsai Ing-wen said she would ease restrictions on imports of U.S. beef and pork, clearing the biggest obstacle to free-trade talks with Washington.

At a televised news briefing Friday, Ms. Tsai said she had instructed her government to ease regulations to allow imports of American pork containing trace amounts of an animal-feed additive used by some U.S. farms, as well as U.S. beef products from cattle age 30 months and older.

China Has More Hogs To Feed On American Corn -- Market Talk

14:40 ET - China's hog numbers are rising again as swine fever is brought under control, increasing the odds that US exports will support corn prices over the next few months, Capital Economics says. Futures have been oscillating between hopes of greater exports and fears of excessive supply. Moreover, CE expects commodities in general to benefit from the US Fed's decision to let inflation run hotter for longer, which could weaken the dollar. Signs of global economic recovery are also expected to boost prices next week, although CE warns China may report some disappointing PMI data. (paulo.trevisani@wsj.com; @ptrevisani)

STORIES OF INTEREST

Beyond Meat Makes Grab at Consumers Through Online Offering -- Market Talk

14:35 ET - Beyond Meat unveiled its e-commerce website Thursday as it vies for space in consumer refrigerators through a direct-to-consumer offering. This helps level the playing field with its closest rival, Impossible Foods. The move is important for Beyond Meat, Canaccord Genuity says, "as Covid-19 accelerates the shift online for consumer spending and more CPG brands launch DTC products." The move helps the plant-based meat alternative maker strengthen its customer ties as well as gain insight into their spending and behavior, Canaccord says. As Covid-19 wreaks havoc on the restaurant and food-service industry, consumers are flocking online and to grocery stores for food instead. Shares fall 1% after rallying more than 5% on Thursday. (kimberly.chin@wsj.com; mskimberlychin)

Bet on Papa John's Shaq-Assisted Rebound -- Heard on the Street

Good news for investors: The turnaround at Papa John's International is still baking.

It is no secret that pizza sales are hot, thanks to the effects of Covid-19. Papa John's said Tuesday that comparable sales were up 24% year over year in North America and 23% overseas in the four weeks through Aug. 23. In the most recent quarter, adjusted earnings of 48 cents a share tripled from a year earlier. Other chains like Domino's Pizza have also experienced strong upticks in business.

FUTURES MARKETS

Hogs, Cattle Fall On Fears Supply Will Outstrip Demand -- Market Talk

15:23 ET - Livestock futures fall amid fears of oversupply, even as slaughtering gathers speed. Lean hogs fall 3.7% to 53.65c a pound, and live cattle loses 1.2% to $1.049 a pound. Traders fear lower demand for meat following Labor Day won't match robust supply, mainly for hogs, as US production of pork has increased substantially over the past few years. Doubts also remain about domestic demand, John Nalivka from Sterling Marketing says. Sales lost to dine-in restaurants have been offset by fast-food and home cooking, plus exports. "But we still need all [those] components," he says. (paulo.trevisani@wsj.com; @ptrevisani)

CASH MARKETS


 
Estimated U.S. Pork Packer Margin Index - Aug 28 
 
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 - 
                             integrated operations 
 
Aug 28       +$ 54.59            +$ 24.88 
Aug 27       +$ 61.34            +$ 28.55 
Aug 26       +$ 55.45            +$ 25.39 
 
 
* 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   98.8 
      (Percent of Year-Ago)      Select  101.0 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Friday fell $2.14 per hundred pounds, to $229.40, according to the USDA. Select-grade prices rose 60 cents per hundred pounds, to $214.86. The total load count was 114. Wholesale pork prices fell $1.71, to $70.64 a hundred pounds, based on Omaha, Neb., price quotes.