TOP STORIES
Big Beef Getting Bigger -- Market Talk
12:24 ET - The recent cyberattack against meatpacking giant JBS gave some critics a new reason to push back against consolidation in the industry, with the resulting outage briefly knocking out around 23% of daily cattle processing in the US. JBS plans to boost its share of that market, though, investing about $130M to add slaughtering and storage space in two big Nebraska beef plants. The expansions will boost JBS's annual US cattle processing capacity by 300,000 head of cattle per year, or about 2.9%, and the company says the bigger plants will expand the market for the more than 1,100 ranchers who supply cattle to the plants. (jacob.bunge@wsj.com; @jacobbunge)
Tyson Targets Net Zero Emissions by 2050 -- Market Talk
0722 ET - Tyson Foods says it's aiming for net zero greenhouse gas emissions by 2050 across its more than 200 meat- and food-processing facilities, expanding its previous target of a 30% reduction by 2030. The largest US meatpacker by sales intends to get half its energy from renewable sources within 9 years, and purchase its livestock and poultry feed from more sustainably operating farms by 2030. Tyson's 2050 target, which is approved by the Science Based Targets Initiative, follows Brazilian rival JBS' March commitment to achieve net-zero greenhouse gas emissions by 2040. (jacob.bunge@wsj.com; @jacobbunge)
Wendy's Down 10% After Stifel Moves to Sidelines
Wendy's Co. shares fell 10% to $26.05 after sharp gains the previous day and a downgrade from Stifel.
Stifel said in an analyst note it is downgrading the quick-service restaurants company to Hold from Buy following Tuesday's 26% appreciation of the stock, surpassing its $25 12-month target price.
"Although we remain constructive toward the company's fundamental outlook, we believe the stock's current valuation...fully reflects the growth we were assuming to reach our target price," Stifel said.
STORIES OF INTEREST
Campbell Says Inflation Weighed on Quarterly Profit
Campbell Soup Co. said inflationary pressures hampered profits during its latest quarter and sales fell, another sign of how food manufacturers are facing a fresh set of challenges as the U.S. economy returns to more normal conditions.
The company behind its namesake soups, snacking products like Goldfish crackers and other food items on Wednesday reported $160 million in net income for its quarter that ended in early May, down from $168 million for the year-earlier period.
Domino's Pizza Sales Look Set to Keep Sizzling -- Market Talk
1249 GMT - Domino's Pizza Group looks likely to increase forecasts for sales and shareholder returns at first-half results due Aug. 3, Peel Hunt says. The brokerage expects Domino's to have kept increasing like-for-like sales by more than 15% in the second quarter, with franchisees at record levels of profitability and returns. Peel says the company is likely to have benefited during the period as customers were allowed to resume collecting orders in person, despite increased competition as restaurants re-opened, while the resumption of major sports tournaments should boost deliveries. "In our view, it's probable that LFL sales, expansion and share buy-back guidance will be raised at the Aug. 3 interim results," Peel analysts say. (philip.waller@wsj.com)
FUTURES MARKETS
Cattle Turns Higher to Close Day -- Market Talk
15:35 ET - After trading lower earlier today, live cattle futures turned the corner, closing up 0.4% at $1.18275 per pound. The uptick comes after cattle futures sold off post-Memorial Day weekend, and also comes despite boxed beef values mostly falling today--with the current cutout value down $1.71 per hundredweight to $220.78 per cwt, according to the USDA. Meanwhile, lean hog futures turned lower after having an up day yesterday--with the most-active contract closing down 0.3% to $1.215 per pound. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Jun 9
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Jun 9 +$ 14.53 +$132.25
Jun 8 +$ 22.66 +$134.07
Jun 7 +$ 33.07 +$134.03
* 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 133.0
(Percent of Year-Ago) Select 133.2
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Wednesday rose 4 cents per hundred pounds, to $338.65, according to the USDA. Select-grade prices rose $1.69 per hundred pounds, to $307.87. The total load count was 102. Wholesale pork prices fell 85 cents, to $132.58 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
06-09-21 1726ET
