LIVESTOCK HIGHLIGHTS : Top Stories of the Day
Domino's Results Top Estimates -- Market Talk
8:44 ET - Domino's Pizza beat same-store sales expectations and reports adjusted EPS of $1.27, topping estimates from analysts polled by Thomson Reuters. The company has been steadily gaining U.S. market share in recent years, bringing it closer to the market leader Pizza Hut. Shares fall 6% to $196.60 premarket, trimming some of the 31% gain posted so far this year. While the market overall has felt good about Domino's in the U.S., the company's affiliates in the U.K. and Australia have fallen on harder times. ([email protected]; @AllisonPrang)
WH Group's US Profit Margin Draws More Concern -- Market Talk
0748 GMT - Shares of WH Group slide further on Thursday, amid concern over the company's profit margins. UBS downgrades the meat producer to a neutral from buy, on the back of squeezed margins in its U.S. business and potentially disappointing 3Q results. While profitability in China remains healthy, the recent acquisitions in Europe will take time to contribute and thus put a limit on WH's dividend growth, UBS says. The broker estimates WH's 2H EBIT to shrink 3% on year. With shares down 3% at HK$7.95, WH is the worst-performing blue chip stock for the 2nd straight session. ([email protected])
China's Pork-Farm Closures Weighing -- Market Talk
0424 GMT - China's environmental push to close down hog farms to reduce pollution is pushing down prices and reducing import demand, says Chenjun Pan at Rabobank. She notes summer closures have resulted in more pigs being slaughtered, increasing domestic meat supplies. But falling sow numbers indicate supplies might tighten in six months. "The pork market is always very volatile...but this time the volatility is more serious," says Pan. ([email protected])
STORIES OF INTEREST
Just Eat Shares Hit Record As Hungryhouse Deal Approved -- Market Talk
1444 GMT - Investors develop their appetite for shares in Just Eat PLC after the online takeaway ordering company gets provisional approval from regulators to buy a rival. The stock gains nearly 6% to 745 pence after the U.K. Competition and Markets Authority said Just Eat PLC's proposed acquisition of Hungryhouse Holdings Ltd. doesn't raise any competition issues, though it will seek further views before making a final decision in November. Chris Beauchamp at IG notes that Just Eat shares are at a record high. "There seems to be no shortage of investors willing to order the shares, with the key 'takeaway' being its exposure to a London market that seems ripe for further expansion," he says.([email protected])
Mosaic Finds Small Tear at Fertilizer Plant -- Market Talk
11:40 ET - Fertilizer giant Mosaic has found a tear in the liner of a wastewater storage pond at a Florida plant, though it says the damage isn't threatening the area's drinking water. MOS reported the tear to Florida environmental agencies in accordance with a pollution-notification law enacted by the state's governor following a massive sinkhole that opened at a different Mosaic fertilizer plant last year, dumping contaminated water into the Florida aquifer. Mosaic says the tear, which sits atop a pile of mining waste called a gyp stack, is small, and that the company is taking steps to inspect the damage and begin repairs. Escaped wastewater is being recovered and monitoring data shows surrounding water is safe to drink, Mosaic says. Florida's Department of Environmental Protection also doesn't think the tear poses a threat to public health or safety. Mosaic down 0.5% at $21. ([email protected]; @jessenewman13)
Livestock Futures Lose Momentum
Cattle futures fell Thursday as traders waited for the week's cash trade to kick off.
October live-cattle futures fell 1.3% to $1.1235 a pound at the Chicago Mercantile Exchange, easing after a week of gains.
Hog futures, meanwhile, also eased after climbing earlier this week. CME October lean-hog contracts fell 0.9% to 60.7 cents a pound.
Zumbrota, Minn Hog $1.00 Higher At $34.00 - Oct 12
Barrow and gilt prices at the Zumbrota, Minn., livestock market today are $1.00 higher at $34.00 per hundredweight.
Sow prices are steady. Sows weighing under 450 pounds are $27.00, 400-450 pounds are at $27.00, 450-500 pounds are $27.00 and those over 500 pounds are $29.00-$31.00.
The day's total run is estimated at 100 head.
Prices are provided by the Central Livestock Association.
Estimated U.S. Pork Packer Margin Index - Oct 12
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
Oct 12 +$28.40 +$27.62
Oct 11 +$31.05 +$27.08
Oct 10 +$32.53 +$26.57
* 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 107.8
(Percent of Year-Ago) Select 109.7
USDA Boxed Beef, Pork Reports
Wholesale choice-grade beef prices Thursday rose $1.12 per hundred pounds, to $197.44, according to the USDA. Select-grade prices rose 69 cents per hundred pounds, to $189.45. The total load count was 121. Wholesale pork prices rose 25 cents, to $73.25 a hundred pounds, based on Omaha, Neb., price quotes.