TOP STORIES
Meat Giant JBS's Owner Settles U.S. Corruption Charges
SÃO PAULO -- Brazil's J&F Investimentos, which controls the world's largest meatpacker, JBS SA, put an end to a long-running legal dispute in the U.S. over bribes it paid in Brazil, agreeing Wednesday to pay $128 million to settle the case.
J&F admitted in 2017 to paying about $150 million in bribes to Brazilian politicians to secure cheap government funding to fuel one of the most ambitious global acquisition sprees in Brazilian corporate history. The affair landed its two major controllers, the billionaire brothers Joesley and Wesley Batista, in jail for several months.
Pilgrim's Pride Reaches Plea Agreement With Justice Department on Chicken Price-Fixing Allegations -- 3rd Update
Chicken processor Pilgrim's Pride Corp. said it has agreed to a plea deal with the U.S. Justice Department to resolve price-fixing charges, and will pay a fine of $110.5 million.
A guilty plea by Pilgrim's, the second-largest U.S. chicken processor by sales, will make it the first company to admit in court to what prosecutors have alleged was a roughly seven-year effort across much of the U.S. chicken industry to inflate prices. That coordination pushed up poultry prices paid by fast-food chains and other chicken buyers, prosecutors alleged.
Fonterra Raises Milk Price Forecast on Strong China Demand -- Update
WELLINGTON, New Zealand--Dairy exporter Fonterra Cooperative Group Ltd. raised its farm-gate milk price forecast for the current production season on improved demand in China.
The New Zealand company, which accounts for about a third of world dairy exports, on Thursday said its forecast payment to farmers is now 6.8 New Zealand dollars per kilogram ($4.25) of milk solids, up from NZ$6.40.
STORIES OF INTEREST
DoorDash in Nationwide Partnership With Taco Bell
DoorDash will service over 5,500 Taco Bell locations across the U.S. under a partnership announced Wednesday.
"With this new partnership, DoorDash will be available at over 75% of all Taco Bell U.S. locations," DoorDash executive Toby Espinosa said.
FUTURES MARKETS
Hog Futures Close At Highest Level Since March -- Market Talk
15:58 ET - Lean hog futures on the CME close up 3.4% at 68.425 cents per pound. It's the highest point the most-active lean hog futures contract has traded since late March--making it a 51% rise for hog futures since July 1. However, China's effort to rebuild its own hog herds post-African swine fever makes some traders nervous. "Numbers now indicate China's hog herd is back to 80% of normal helping to replenish the nation's pork supply," says Karl Setzer of AgriVisor. "There is little doubt this will start to reduce China's pork imports... the obvious worry is that without exports the United States will again be facing rising pork inventory and lower prices." Live cattle futures closed 0.9% lower at $1.10275 per pound. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Oct 14
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Oct 14 +$ 65.08 +$ 77.79
Oct 13 +$ 58.05 +$ 76.61
Oct 12 +$ 55.94 +$ 72.84
* 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 96.8
(Percent of Year-Ago) Select 104.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday fell $1.30 per hundred pounds, to $211.14, according to the USDA. Select-grade prices fell 81 cents per hundred pounds, to $199.27. The total load count was 173. Wholesale pork prices rose 55 cents, to $95.25 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
10-14-20 1738ET
