TOP STORIES 


 
Olive Garden, Other Chains Suffer New Losses During Latest Covid-19 Surge

Restaurant chains are showing signs of fresh stress this week as the latest coronavirus surge fuels new sales losses. Darden Restaurants Inc., Olive Garden's parent company, on Friday reported a same-store sales drop of 20.6% for the sit-down chain's second quarter compared with last year's period, missing analysts' expectations. More than a quarter of Darden's restaurants were closed for indoor dining as of this month, up from 8% in early November, the company said Friday. Weekly same-store sales across the chain's restaurants were down 36.9% for the week ending Dec. 13 compared with last year, a slide from a year-over-year 23.4% decrease in the week ending Nov. 8. 


 
UK Sheep-Farming Industry Faces Brexit Red-Tape Hit -- Market Talk

1321 GMT - New live-animal movement regulations following the U.K.'s planned full EU exit next year could devastate the U.K. sheep-farming sector, industry chiefs say. New rules essentially will end transit of live breeding sheep between Great Britain and Northern Ireland after Jan. 1 as they won't meet EU requirements, the National Sheep Association says. Commitments to post-Brexit "free and frictionless" trade between GB and NI have been broken, says NSA Chief Executive Phil Stocker. "All live-animal movements between GB and NI will be classified as an EU movement, creating catastrophic consequences for many pedigree breeders and those trading in commercial breeding animals on both sides of the water," he says. No-one from the U.K. Department for Environment, Food & Rural Affairs was available to comment. (philip.waller@wsj.com)

STORIES OF INTEREST 


 
Darden's Sales Expectations Soften -- Market Talk

0800 ET - Darden Restaurants reports a 2Q same-store sales drop of 20.6% compared to last year's period, missing analyst expectations as new coronavirus restrictions hurt the sit-down chain. The company projects total 3Q sales of between 65% to 70% compared to prior year's business, a decline from 2Q sales expectations reported last period. Uncertainty surrounding restaurant capacity limits, dining room closures and the duration of the pandemic remain, Darden says. Shares fall 2.8% in pre-market trading. (heather.haddon@wsj.com; @heatherhaddon) 


 
Weston Family to Sell Shares to George Weston, Loblaw at Below-Market Prices

The family behind the Canadian food-processing company George Weston Ltd. and grocery chain Loblaw Cos. is selling some shares in the two companies at below-market pricing. George Weston controlling shareholder W. Galen Weston, through an entity he controls, is selling shares as part of a reorganization of his holdings and doesn't have any intention to sell George Weston or Loblaw shares outside the Weston family, the two companies said Friday.

FUTURES MARKETS 


 
Cattle Rises as Inventory Stays Steady -- Market Talk

15:12 ET - Live cattle futures finished trading on the CME 0.4% higher, closing at $1.1485 per pound. Trading was quiet ahead of the release of the USDA's monthly Cattle on Feed report, which was issued at 3pm ET. The report shows a steady level of cattle inventory on feed, with 12.04 million head on feed as of Dec. 1, essentially unchanged for the same timeframe last year. However, placements of cattle on feed were 9% off of this time last year, totaling 1.91 million head. Lean hog futures also closed trading higher Friday, finishing 0.5% higher of 65.8 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS 


 
Estimated U.S. Pork Packer Margin Index - Dec 18 
 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Dec 18       +$ 35.13            +$ 24.38 
Dec 17       +$ 37.43            +$ 27.86 
Dec 16       +$ 35.75            +$ 31.43 
 
* 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   99.8 
      (Percent of Year-Ago)      Select   96.7 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Friday fell 88 cents per hundred pounds, to $208.63, according to the USDA. Select-grade prices rose 57 cents per hundred pounds, to $194.27. The total load count was 115. Wholesale pork prices fell $1.62, to $70.41 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

12-18-20 1753ET