LIVESTOCK HIGHLIGHTS : Top Stories of the Day
Eggs Contaminated With Insecticide Found in EU and Hong Kong
BRUSSELS -- Sixteen countries in Europe as well as Hong Kong received eggs contaminated with banned insecticide fipronil, the European Union's executive branch said Friday.
A meeting of European agriculture ministers and regulators is scheduled for Sept. 26 to discuss the incident, said Mina Andreeva, a spokeswoman for the European Commission.
Half the Major Restaurant Cos Miss 2Q Sales Expectations -- Market Talk
13:17 ET - It's been another challenging quarter for the US restaurant industry. About half of the major restaurant companies missed same-store sales growth expectations in 2Q and most made cautionary comments about the outlook for the remainder of the year, according to Barclays. The reasons restaurants cited for the continuing slump included consumers' increasing migration to online shopping, the gap between restaurant and grocery prices and an oversupply of restaurants. Chains such as DineEquity's (>> DineEquity Inc) Applebee's have been responding by closing restaurants and beginning comprehensive reviews of their business, as in the case of Potbelly (>> Potbelly Corp). The standouts in 2Q were the big three burger chains, McDonald's (>> McDonald's Corporation), Restaurant Brands' (>> Restaurant Brands International Inc) Burger King and Wendy's (>> Wendys Co), which each reported same-store sales growth of 3% to 4%. That phenomenon has only occurred three times since 2012 and 2Q marks the best quarter for fast-food burger chains since 1Q16, Barclays says, explaining that low cost menu items and convenience worked in their favor. ([email protected])
STORIES OF INTEREST
Corn, Soybeans Consolidate After Bumper Harvest Forecasts
Corn and soybean futures inched higher on Friday, recovering from unexpected forecasts for bumper corn-and-soybean harvests this year.
The U.S. Department of Agriculture surprised traders on Thursday by raising its soybean yield estimate to 49.4 bushels per acre and forecasting a higher-than-expected corn yield at 169.5 bushels per acre.
WASDE Bearishness Surpasses Rabobank Expectations -- Market Talk
0915 GMT - The U.S. Department of Agriculture's August World Agricultural Supply and Demand Estimates Report is bearish for grains and oilseeds, with "higher-than-anticipated U.S. production and therefore ending stocks likely to weigh heavily on prices," according to Rabobank in a morning note. While the USDA upped its forecast for soybean production, it cut its corn forecast, but not enough, Rabobank says. "We view a 2017/18 U.S. corn yield forecat of 169.5bpa as too high," the bank says. On top of that, a huge Russian crop means global wheat ending stocks will "surpass all expectations" as well. Wheat is up 0.51% at $4.41 a bushel, corn is up 0.27% at $3.72 a bushel, and soybeans are down 0.11% at $9.39 a bushel. EU wheat is flat at $167.50 a ton. ([email protected]; @davidhodari)
Livestock Futures Climb After Mixed Week
Cattle futures rose as traders took profits on a recent selloff, with prices down 5% for the week.
Contracts for live and feeder cattle have fallen sharply in recent days as traders faced an increasingly negative outlook. Cash-market and wholesale beef prices slid this week while cattle weights and herd sizes recently trended higher.
Estimated U.S. Pork Packer Margin Index - Aug 11
Date Standard Margin Estimated margin
Operating Index at vertically -
Aug 11 +$28.01 +$ 71.50
Aug 10 +$28.21 +$ 73.78
Aug 9 +$24.57 +$ 72.90
* 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 99.4
(Percent of Year-Ago) Select 102.1
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Friday fell $1.03 per hundred pounds, to $199.60, according to the USDA. Select-grade prices fell 7 cents per hundred pounds, to $196.12. The total load count was 90. Wholesale pork prices fell $1.06, to $93.66 a hundred pounds, based on Omaha, Neb., price quotes.