USDA Meat Forecast Falls, But Not For Beef -- Market Talk
12:47 ET - The USDA lowers forecast for 2020 total red meat and poultry production, "as lower pork and broiler production more than offsets higher beef and turkey production," its WASDE report says. The outlook for beef production, however, rises slightly on higher cattle slaughter, as packers work through the larger-than-usual herd kept on feedlots during coronavirus shutdowns. Next year forecasts are also reduced from August, including for beef. (firstname.lastname@example.org; @ptrevisani)
Kroger Focused on Offering Promotions -- Market Talk
12:55 ET - Kroger will continue to offer promotions executives say during the quarterly earnings call, as the company has done throughout the pandemic. Executives say they expect the inflation in meat prices to normalize. In terms of growth, beer and wine categories continue to sell well as are large-package items. During the latest quarter, CPG brands generated stronger sales growth than store brands, they added while noting that Kroger's store brands continue to gain share. (email@example.com; @_jaewonkang)
STORIES OF INTEREST
Smithfield Packaged Meats Cited By Department Of Labor For Failing To Protect Workers From Coronavirus -- MarketWatch
Smithfield Packaged Meats Corp. has been cited for one violation by the Department of Labor's Occupational Safety and Health Administration for failure to protect its workers from coronavirus. OSHA found that the Sioux Falls, S.D. facility didn't "provide a workplace free from recognized hazards that can cause death or serious harm," the announcement said. OSHA has proposed a penalty of $13,494, the maximum that's legally allowed. "Employers must meet their obligations and take the necessary actions to prevent the spread of coronavirus at their worksite," OSHA Sioux Falls Area Director Sheila Stanley said in a statement. OSHA guidance for prevention of the spread of coronavirus includes social distancing of at least six feet, the use of face coverings, and training for workers on how to stop the spread. Smithfield has 15 days to comply or respond to the violation. At least 1,294 Smithfield workers contracted coronavirus, and four employees died in the spring. Earlier this year, meatpacking plants became hotspots for coronavirus infection, with lawsuits filed by the families of workers who died of the illness. Tyson Foods Inc. (TSN) announced in late July that it was adding nurses and a chief medical officer to manage the issue after more than 1,000 confirmed cases in a Waterloo, IA facility.
Muscle Maker Shares Falter After $5.6M Stock Offering Prices
Muscle Maker Inc. shares were under pressure Friday after the prepared-food company said a $5.6 million public offering of shares had priced.
In morning trading, the stock was down 8%, to $1.73.
Muscle Maker said an offering of almost 3.3 million shares was priced to the public at $1.70 each, and it granted the underwriters a 45-day option to buy up to an additional 494,117 shares.
Hog Futures Hit Highest in Nearly Six Months -- Market Talk
15:28 ET - Lean hog futures trading on the CME finish the session up 5% to 66 cents per pound. It's the highest that hog futures have closed since late March, or nearly six months. Even so, new estimates released by the USDA in its monthly WASDE report peg the average 2020 hog futures price at $44.25 per hundredweight--well down from its current levels. Meanwhile, live cattle futures finish trading up 0.4% at $1.05525 per pound. (firstname.lastname@example.org; @kirkmaltais)
Estimated U.S. Pork Packer Margin Index - Sep 11
Date Standard Margin Estimated margin
Operating Index at vertically -
Sep 11 +$ 53.58 +$ 46.20
Sep 10 +$ 53.11 +$ 44.89
Sep 9 +$ 56.93 +$ 43.54
* 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 100.0
(Percent of Year-Ago) Select 104.3
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell 94 cents per hundred pounds, to $219.89, according to the USDA. Select-grade prices fell 22 cents per hundred pounds, to $207.10. The total load count was 164. Wholesale pork prices rose 61 cents, to $80.56 a hundred pounds, based on Omaha, Neb., price quotes.