TOP STORIES

 

Darden, Denny's Say Sales Down Sharply During Coronavirus

Darden Restaurants Inc. and Denny's Corp. said their sales have plummeted in recent weeks, highlighting the threat casual restaurant chains face as their dining rooms remain closed amid restrictions meant to halt the spread of the new coronavirus.

Darden, the operator of Olive Garden and other restaurants, said Tuesday that comparable sales across its portfolio fell 39% during the first six weeks of its current quarter, a period that ended April 5. Comparable sales were down at least 71% for each of the last three weeklong periods, the company said.

 

Farmer Sentiment Dives on Coronavirus Concerns -- Market Talk

16:10 ET - Coronavirus pandemic concerns have farmers on edge according to the Ag Economy Barometer. The survey, which is jointly conducted by the CME Group and Purdue University, shows farmer positivity plummeting 28% from a month ago, when the barometer reached an all-time high as farmers celebrated the signing of a trade deal with China and the resumption of exports there. The barometer is now at its lowest level since Sept. 2019, when farmers grappled with weak commodity prices and heightened tension with China. "While originally it was thought that the coronavirus effect would be limited to trade with China, now it appears producers are bracing for challenging financial times leading into the 2020 planting season," says James Mintert, director of Purdue University's Center for Commercial Agriculture. (kirk.maltais@wsj.com; @kirkmaltais)

 

STORIES OF INTEREST

 

Corn Clips Seven-Session Slide

Corn for May delivery rose 1.1% to $3.31 1/2 a bushel on the Chicago Board of Trade on Tuesdad with managed money investors opting to cash in short positions in corn ahead of Thursday's WASDE report.

Soybeans for May delivery fell 0.1% to $8.54 3/4 a bushel.

Wheat for May delivery fell 1.2% to $5.49 1/4 a bushel.

 

WASDE Expected to Loom Large Over Prices Next Week -- Market Talk

12:09 ET - With the USDA releasing its monthly WASDE report Thursday, many grain traders are expecting the factors moving grains futures on a day-to-day basis to shift off coronavirus-related news and more onto supply and demand fundamentals in 2020/21. "A major report looms large for Thursday and that will be the key for prices all next week," says Jerry Welch of Midwest Market Solutions. Analysts polled by WSJ this week expect grain stockpiles in the US to rise, while South American crop production declines--making April's report a mixed bag. CBOT corn up 1.8% Tuesday, while soybeans climb 0.4% and wheat is down 1.5%. (kirk.maltais@wsj.com; @kirkmaltais)

 

Poet Confirms Idling of Three Ethanol Plants -- Market Talk

11:17 ET - Ethanol producer Poet says that it will idle production at its bioprocessing facilities in Chancellor, S.D., Ashton, Iowa, and Coon Rapids, Iowa, and delay the start-up of its new plant in Shelbyville, Ind. in reaction to the effect coronavirus has had on producer margins and consumer demand. The stoppages are expected to reduce corn demand by 110M bushels and reduce ethanol production by 330M gallons, the company says Tuesday. "Plummeting fuel demand amid the coronavirus pandemic has overwhelmed markets already suffering from continued trade barriers, a foreign price war over oil and regulatory uncertainty here at home," says Poet CEO Jeff Broin. A steep drop in oil prices has made ethanol unprofitable for producers, leading to a rash of closures across the country. (kirk.maltais@wsj.com; @kirkmaltais)

 

FUTURES MARKETS

 

Livestock Futures Close Out Day Limit Up -- Market Talk

15:18 ET - In another turn for volatile livestock futures, both lean-hog futures and live-cattle futures on the CME finish limit up, with cattle rising 5.6% to 84.8 cents a pound and hogs rising 6% to 52.65c. This comes after hog futures dropped 25% last week, and cattle futures 10%. Indications that new cases of coronavirus are starting to come down in the US helped fuel both equities and livestock today, with hopes of food service reopening at the end of the month being the main factor for livestock futures. However, both New York and New Jersey reported their highest daily coronavirus death tolls today, likely pumping the brakes on livestock enthusiasm in tomorrow's session. (kirk.maltais@wsj.com; @kirkmaltais)

 

CASH MARKETS

 
Estimated U.S. Pork Packer Margin Index - Apr 7 
 
This report reflects U.S. pork packer processing margins. The margin indices 
are calculated using current cash hog or carcass values and wholesale pork 
cutout values and may not reflect actual margins at the plants. These 
estimates reflect the general health of the industry and are not meant to 
be indicative of any particular company or plant. 
Source: USDA, based on Wall Street Journal calculations 
All figures are on a per-head basis. 
 
Date     Standard Margin       Estimated margin 
         Operating Index         at vertically - 
                             integrated operations 
 
Apr  7       +$ 23.71            -$ 17.28 
Apr  6       +$ 31.05            -$  9.56 
Apr  3       +$ 22.19            -$ 11.32 
 
* 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   99.7 
      (Percent of Year-Ago)     Select   98.6 
 
USDA Boxed Beef, Pork Reports 

Wholesale choice-grade beef prices Tuesday fell $2.17 per hundred pounds, to $227.88, according to the USDA. Select-grade prices rose $2.72 per hundred pounds, to $217.75. The total load count was 162. Wholesale pork prices fell $3.59, to $53.70 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

April 07, 2020 17:34 ET (21:34 GMT)

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